1Q17. BH Shopping, Belo Horizonte

Transcription

1 BH Shopping, Belo Horizonte Discussion Material May, 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 13.3% in NOI and 8.2% in FFO. 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 76.6% and 775,189 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$13.3 billion 3, the largest among publicy traded real estate companies in Brazil; 97.4% of average occupancy rate in ; 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. 1 CAGR: Compound Annual Growth Rate. 3 GLA: Gross Leasable Area. 2 Share price of R$63.20 on Macrh 31 st, 2017 (Bloomberg). 4 Over Company s properties (18 shopping centers and 2 office towers). 5 % of Gross Leasable Area of shopping centers and office towers. 19/20 19/20 Managed properties 4 Properties with interest of 50% or 4 more 78.2% Portfolio ownership Source: Multiplan 3 5

4 Leading shopping center portfolio in Brazil Multiplan s Portfolio Footprint: Portfolio s Market Share: SHOPPINGS SHOPPINGS SHOPPINGS ABL Total ABL (m²) Total ABL (m²) Total (m²) Shopping Centers (2016) Total GLA (2016) Vendas (R$) Vendas Venda (R$) Tenants Sales (2016) Other Shopping Centers 96.8% Other Other Shopping Shopping Centers Centers 3.2% 96.8% 96.8% AL 3.2% Other Shopping Centers 3.2% 94.9% Other Other Shopping Shopping 5.1% 5.1% Centers Centers 94.9% 94.9% 5.1% Other Shopping Centers 91.3% Other Other Shopping 8.7% Shopping 8 Centers Centers 91.3% 91.3% DF MG SP PR RJ Multiplan s Portfolio Size: States Exposed to: RS 18 Shopping Centers 775 thousand sq.m. of GLA 54% of country s population 72% of country s GDP Source: Multiplan, Abrasce and IBGE 4

5 Operating Efficiency Tenants sales: Multiplan & USA malls Operating efficiency: Multiplan & Brazilian malls Tenants sales USD/sq.f. ³ (satellite stores only) Tenants sales USD/sq.f.³ (anchor + satellite stores) Rental Revenue USD/sq.f.³ (anchor + satellite stores) % % % 41 USA malls¹ Multiplan's malls Brazilian malls² Multiplan's malls Brazilian malls² Multiplan's malls Food Court, Gourmet Area and Minimarkets 11,6% Multiplan (Mar-2017) Home & Office 7,4% Store Segment GLA Distribution Apparel 35,9% Food Court, Gourmet Area and Minimarkets 21,0% USA (Sep-2016) 4 Home & Office 7,0% Apparel 50,0% Miscellaneous 21,8% Miscellaneous 11,0% Services 1 Source: ICSC International Council of Shopping Centers 23,4% 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 Shopping Centers Sales Evolution of tenants sales (R$) Evolution of Same Area and Same Store Sales growth (%) Breakdown of Same Store Sales per segment in 3.0 B 1Q % 3.2 B 5.0% 5.6% 4.2% 4.1% 3.9% 4.2% 4.1% 2.5% 3.2% 2.7% 3.2% 2.1% 2.3% 2.8% 5.0% 0.6% 1.6% 2.5% 2.5% 0.0% 2.7% 0.6% 3.9% 2.1% 4.2% 1.6% 4.1% 2.3% 3.2% 3.2% 0.0% 1.6% 2.3% 2.8% 2.8% 1.5% -2.5% 3Q15 4Q15 1Q16 2Q16 3Q16 1Q16 2Q16 3Q16 4Q16 SSS Growth Anchor Satellite Total Food Court & Gourmet % +0.2% Apparel +1.2% +2.4% +1.6% Home & Office +8.7% +21.4% +17.1% Miscellaneous -4.1% -1.3% -2.3% Services +6.1% +18.9% +14.6% Total +1.1% +4.4% +3.2% Same Area Sales Same Store Sales Turnover in GLA (sq.m.) and as % of total GLA (%) SAS and SSS spread (%) 5.1% 35, % 34, % 30, % 36, % 34, % 1.0% 1.4% 2.6% 2.3% Source: Multiplan Mar-17 (LTM) 1Q13 1Q14 1Q15 1Q16 SAS and SSS Spread (%) 6

7 97.6% 98.1% 98.6% 98.4% 98.8% 99.0% 98.4% 98.1% 98.0% 97.6% 97.4% 97.3% Selected Operating Data Evolution of occupancy cost Evolution of delinquency rate and rent loss 14.0% 13.7% 13.5% 13.9% 14.0% 13.8% 6.0% 5.9% 12.7% 13.1% 13.1% 5.4% 5.8% 5.8% 13.0% 13.1% 5.8% 13.0% 4.5% 5.4% 5.3% 5.4% 5.6% 5.6% 5.3% 8.1% 7.8% 8.1% 8.1% 8.2% 8.1% 2.2% 1.9% 1.8% 3.6% 3.0% 2.7% 1.8% 1.1% 7.3% 7.8% 7.6% 7.4% 7.5% 7.7% 1Q13 1Q14 1Q15 1Q16 Five 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 Rent Other as % of as Sales sales % Other Occupancy as % of Sales cost quarters Average 1Q13 1Q14 1Q15 1Q16 Gross Delinquency Rate Net Delinquency Rate 4Q16 Rent Loss Evolution of shopping center occupancy rate: 1Q % 98.5% 98.6% 97.9% 97.4% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Source: Multiplan 7

8 % of Rental Revenues Gross revenue breakdown in 2017 Diversified Revenues Rental revenue diversification: Top retail chains in 2017 Key Money 0.7% Others 1 2.6% Services 8.1% Parking 14.8% Rent 73.8% Merchandising 6.1% Base rent 91.5% Overage 2.4% 25% 23% 21% 19% 17% 15% 13% 11% 9% 7% 5% 3% 1% Top 10: 12.4% Top 25: 22.1% % 10.6% 9.4% 6.9% Same Store Rent growth (YoY) 14.1% 10.4% 9.6% 8.8% Number of Retail Chains 7.4% 7.1% Average Real SSR 5 years: 1.4% Since IPO: 2.6% 8.7% T17 Real SSR growth 1 2.5% 1.5% 5.7% 3.0% 5.7% 5.0% 4.0% 2.5% 2.4% (2.2%) (1.0%) 1 Real SSR considering the IGP-DI adjustment effect in each period. Source: Multiplan 8

9 Strong and Predictable Revenues Rental revenue breakdown (R$), rent loss and occupancy rate (%) M 97.4% 96.6% 96.9% 98.6% 98.2% 97.9% 98.1% 98.7% 98.3% 97.5% 97.4% 100.0% M M M M M M M 84.2% 83.2% M M 85.8% 84.7% M 86.2% M 87.3% M 88.6% M 88.7% M 88.9% M M 89.7% 89.9% 95.0% 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% % 0.7% 0.9% 0.9% 0.9% 1.3% 0.4% 0.7% 0.8% 0.7% 1.3% 1.3% Mar/17 (LTM) Base rent Merchandising Overage Average occupancy rate (%) Rent loss Source: Multiplan 9

10 Cash generation and debt position (R$) as of March 31, 2017 Debt and Cash Debt indexes on March 31, 2017 Debt indexes evolution 1,116.7 M 3,047.4 M 1,930.7 M M M Financial Position Analysis ¹ Mar. 31, 2017 Net Debt/EBITDA 2.39x Gross Debt/EBITDA 3.78x EBITDA/ Net Financial Expenses 3.62x Net Debt/Fair Value 11.2% Total Debt/Shareholders Equity 0.60x Net Debt/Market Cap 14.5% Weighted Average Maturity (Months) 45 Others 7.4% TR 40.4% CDI 52.2% Others 3.7% TR 32.1% CDI 64.2% Cash Gross Debt Net Debt EBITDA (LTM) FFO (LTM) Mar-16 Mar-17 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% 13.75% 14.25% 14.25% 14.25% 14.25% 14.25% 11,75% 13.75% 10,75% 12.75% 11,00% 11,00% 13,09% 13,22% 12.25% : -7 b.p % 12,81% 13,23% 13,50% 13,18% % 11.00% 11.00% 12.81% 13.09% 13.22% 13.23% 13.50% 13.18% 10.75% 11.53% 12.29% % 10,41% 10,50% 10,54% 10,96% 11,53% 12,29% 12.18% 10.41% 10.96% 10.50% 10.54% ez/13 mar/14 jun/14 set/14 dez/14 mar/15 Jun-15 set/15 dez/15 mar/16 jun/16 set/16 dez/16 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Multiplan cost of funding (gross debt) Multiplan Cost of Funding (gross debt) Selic rate Selic Rate ¹ EBITDA and Net Financial Expenses are the sum of the last 12 months. Source: Multiplan and BCB (Banco Central do Brasil) 10

11 Debt Amortization Schedule and Covenants 4.00x 3.00x 2.00x 2.44x Evolution of Net Debt/EBITDA 2.33x 2.43x 2.40x 3.04x 2.39x 1.00x Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Lowest covenant (4.00x) Covenant ¹ Financial Covenants Limit Mar-17 Debt Volume Status Net Debt/EBITDA <= 4.00x 2.39x 1,578.4 M Comply EBITDA/Net Financial Expenses >= 2.00x 3.62x M Comply Total Debt/Total Asset <= 0.50x 0.35x 69.3 M Comply EBITDA Margin >=20.0% 67.2% 69.3 M Comply Total Debt/Shareholders Equity <= 1.00x 0.60x 38.2 M Comply Total debt w ith financial covenants 1,647.7 M Debt amortization schedule (%) Debt amortization schedule (R$) M 54 M 34 M 427 M % > % % % M 233 M 364 M 600 M 199 M 233 M 58 M 422 M 401 M 4 M 199 M 803 M % % M 110 M 110 M 290 M 402 M ¹EBITDA and Net Financial Expenses are the sum of the last 12 months. Source: Multiplan M 101 M 149 M 149 M Loans and financing (banks) Property acquisition obligations Debentures 11

12 NOI and Stock Price Evolution LTM NOI (1) and stock price evolution since IPO Oct 17 th, 2012 (1) LTM NOI (2) of R$570 mn R$63.18/share Mar 31 st, 2017 LTM NOI (3) of R$986 mn R$66.30/share NOI CAGR 2007/17: 17.0% (+381.8%) Share price CAGR 2007/17: 10.2% (+165.2%) 100 Jul-07 Apr-08 Jan-09 Oct-09 Jul-10 Apr-11 Jan-12 Sep-12 Jun-13 Mar-14 Dec-14 Sep-15 Jun-16 Mar-17 Source: Multiplan and Bloomberg as of March 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 December 31 th, (3) NOI from Oct/11 to Sep/

13 10-Year CAPEX and Interest Rate Evolution 1,600 1,200 Acquisition Development Capex Capex Development Acquisition and other Capex Capex Interest Rate (Selic) 16.00% (% Selic rate) 16% 16% 1,400 1,200 1,000 1,344 M 14.00% 14% 14% 1, M % 951 M 10.00% 12% 12% M 689 M 725 M 8.00% 10% 10% M 477 M 442 M 6.00% (1) 8% 8% M E 9M M 229 M 4.00% 175 M (2) 6% 6% 4% M E 4% E 2017E E data consider Brazil Central Bank s Abr-17 FOCUS report projection of 8.50% interest rate at the end of Source: Multiplan. 13

14 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 14

15 48,000 sq.m. of GLA Greenfield Under Construction Multiplan s Stake: 80% Opening: Nov-17 Leased GLA: 80% CAPEX (1) : R$359.3 M Key Money (1) : R$26.5 M 3 rd year NOI (2) : R$36.0 M 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 15

16 RibeirãoShopping Medical Center Expansion Pátio Savassi Expansion II Expected opening: 2Q17 6,200 sq.m. of GLA Multiplan s stake: 100.0% Leased GLA: 72.1% CAPEX (1) : R$35.5 M Expected opening: 4Q17 2,300 sq.m. of GLA Multiplan s stake: 96.5% Leased GLA: 100.0% CAPEX (2) : R$34.9 M (1) Considering Multiplan s interest in the CAPEX of 100.0%. (2) Considering Multiplan s interest in the CAPEX of 96.5%. Source: Multiplan 16

17 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 (Mar-17) 1 3 Municipalities with a shopping center 205 Shopping center owned GLA breakdown in Brazil 1 4 (Mar-17) 900 1,350 Public companies 22% Municipalities without a shopping center 5,365 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, Abrasce and reports from the following public companies: Aliansce, Brmalls, CCP, General Shopping, Iguatemi, JHSF and Sonae Sierra. 17

18 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