Multiplan Empreendimentos Imobiliários announced its earnings results for the first quarter of 2022 (1Q22) on Thursday (4/28), setting both operating and financial performance positive records. Total tenant sales reached R$ 4.0 billion, a record for a first quarter, representing an increase of 74.8% vs. 1Q21 and 13.5% vs. 1Q19. In March this year, total sales growth was 20.8% vs. 1Q19 while, in April, the upward trend followed, with an increase of 60.4% vs. 2021 and 32.2% vs. 2019 in the first 25 days of the month.
Eight malls in Multiplan's portfolio presented double-digit growth over 2019, including VillageMall (+57.0%), ParkShopping Canoas (+30.6%) and Parque Shopping Maceió (+28.0%).
Rio de Janeiro's malls were the quarter’s sales highlights, posting 28.7% growth over 2019, reaching R$ 1.1 billion in 1Q22. The malls in the South region also reported above-average performances and posted growth of 14.9% over 1Q19.
Same Store Sales (SSS) grew 68.3% in 1Q22 over 1Q21 and 11.6% over 1Q19. Considering only the month of March, the SSS indicator grew 19.9% over the same month in 2019.
In 1Q22, the Apparel segment produced the highest growth compared to 2019: +25.0%. The Miscellaneous Articles segment recorded the second highest increase, up 15.3% compared to 1Q19. On the other hand, the Household & Office Goods segment dropped 15.1% from 1Q19, after strong results in 2020, mainly as a result of the easing of restrictions, since people are back to previous daily routines, spending more time away from home.
Vehicle flow increased, reaching 95.8% of 2019’s levels by April 2022.
Multi triples downloads and expands unique users by 135% with novelties and coupons
The Multi app’s downloads tripled over the same quarter of the previous year (+263%), reaching 235,000 in 1Q22 and 2.2 million since launch, closing 1Q22 with 135% growth in unique users over the same period of 2021. Features such as payment of parking fees through the app (reaching double-digit percentage in some malls of the chain), events in the malls for which Multi offers customer benefits and in-person discount coupons were the main factors that contributed to this significant result.
The in-person coupon initiatives have proven to be a strong traffic driver for Multiplan's malls and its tenants, stimulating initial and recurrent use of the application, as well as generating data on the consumption profile, which already helps, for example, to steer marketing efforts. During the Consumer Week, held from March 11 to 20, about 10% of the storeowners of Multiplan's shopping centers made offers available, totaling more than 700 different in-person discount coupons through the Multi application.
Another highlight was the expansion of the MultiVocê loyalty program to all the chain's malls. Integrated with the superapp, the program is part of the company's digital strategy to build customer loyalty and allow a broader view of their consumption habits. In May, Multiplan will launch a new advertising campaign for Multi, further bolstering the application.
Confidence and perception of value in the portfolio, with higher occupancy rate
The average occupancy rate of Multiplan's shopping center portfolio was 94.8% in 1Q22, an increase of 25 b.p. compared to 1Q21. Fourteen malls reported occupancy rates above 95%, of which five were equal to or higher than 98%.
Multiplan’s turnover rate (entrance of new stores) was 1.6% of the total GLA under management in the first quarter, or 12,379 m², once again demonstrating the strong demand from tenants to be part of the Company's portfolio. More than 88% of the incoming GLA belongs to tenants that are expanding their presence in Multiplan's shopping centers, demonstrating confidence in the portfolio.
Gross revenue, NOI, EBITDA, net income and FFO evolve compared to 1Q19
Gross revenue totaled R$ 453.8 million in 1Q22, 33.5% higher than 1Q19, mainly due to the R$ 102.8 million increase in rental revenue, despite the negative effect of the Straight Line effect.
In 1Q22, Net Operating Income (NOI) was the highest recorded for a first quarter and the second highest in the Company's history, including the four seasonally strongest quarters. NOI ended the quarter at R$ 342.4 million, 70.3% higher than 1Q21 and 23.4% better than 1Q19, with a margin of 87.6% (+970 b.p. vs. 1Q21 and -142 b.p. vs. 1Q19), primarily because of the R$ 390.9 million in operating revenues for the period.
EBITDA reached R$ 295.4 million in 1Q22, up 28.2% compared to 1Q19. The growth was mainly a result of the 36.4% increase in net revenue in the quarter. If, for analysis purposes only, the Straight Line effect was excluded, ex-linearity EBITDA would be R$ 306.7 million, the second highest result ever recorded (not considering the effect of the sale of Diamond Tower in 3Q20), and the highest for a first quarter, being 38.7% higher compared to 1Q19.
EBITDA for the last 12 months reached R$ 974.9 million, up 3.2% vs 2019.
Net income more than tripled compared to the same period in 2021, totaling R$ 171.6 million in 1Q22, an 86.6% surge over 1Q19, benefiting from 36.4% growth in net revenue and a diminished tax burden.
Operating Cash Flow (OFC) totaled R$ 210.7 million in 1Q22, the highest ever reported by Multiplan for a first quarter, representing an increase of more than three times over 1Q21 and 51.4% higher than 1Q19, mainly due to the 41.1% rental revenue growth.