Multiplan Empreendimentos Imobiliarios SA · BMFBOVESPA:MULT3
Multiplan Empreendimentos Imobiliarios SA — Multiplan — Debt Investor Presentation (September 2017)
25 slides from Multiplan Empreendimentos Imobiliarios SA's debt investor presentation, September 2017
Slide 1: 2Q17 Fixed Income
2Q17 Fixed Income September, 2017 ParkShoppingCanoas Parque Getúlio Vargas, Canoas (RS) 1
Slide 2: Disclaimer
2Q17 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“, "ex
Slide 3: Multiplan at a Glance
2Q17 Multiplan at a Glance High Productivity Portfolio Historical growth strategy breakdown Recognized developer of top-of-mind shopping centers in regions with the (% of total GLA2) largest GDP in Brazil; Full service Company that plans, develops, owns and manages one of the most efficient shopping
Slide 4: Leading shopping center portfolio in Brazil
2Q17 Leading shopping center portfolio in Brazil Multiplan’s Portfolio Footprint Portfolio’s Market Share in Brazil SHOPPINGS SHOPPINGS Centers (2016) ABL Total SHOPPINGS Shopping (m²)GLA ABL Total Total ABL(m²) Total (m²) (2016) Vendas Tenants’ (R$) Vendas Sales (2016)(R$) Venda 558 malls 15,237,00
Slide 5: Projects Delivered Since IPO
2Q17 32 Projects Delivered Since IPO 4 Source: Multiplan 5
Slide 6: 10 Years of IPO
2Q17 10 Years of IPO GLA growth since the IPO in 2007 Since the IPO Pre-IPO 8 new shopping centers 38% 17 mall expansions 279.5k sq.m. of GLA was 24% of GLA for international turned-over brands in Jun-17 2 office tower complexes After IPO +4.9x 8 minority stake acquisitions 62% = +418,400 sq.m. of o
Slide 7: Segments evolution in Multiplan's portfolio
2Q17 10 Years of IPO Segments evolution in Multiplan’s portfolio +4.0% +4.9x 2007 2017 39% 39% +9.1% 33% 33% +5.3% 30% 30% 22% 21% 20% 22% 21% +3.0% 20% +7.5% 10% 11% 7% 8% 11% 10% 7% 8% Apparel Miscellaneous Home & Office Food Court & Gourmet Services Area Vestuário Artigos Diversos Lar & Alimentaç
Slide 8: Operating Efficiency
2Q17 Operating Efficiency Tenants sales: Multiplan & USA malls Operating efficiency: Multiplan & Brazilian malls Tenants sales – USD/sq.f. ³ Tenants sales – USD/sq.f.³ (anchor + Rental Revenue – USD/sq.f.³ (anchor + (satellite stores only) - 2016 satellite stores) - 2016 satellite stores) - 2016 +53
Slide 9: Shopping Centers Sales
2Q17 Shopping Centers Sales Evolution of tenants’ sales (R$) Evolution of Same Area and Same Store Sales growth (%) CAGR: +7.7% +8.7% Sales 7.8% 3.5 B Jul-17: 3.2 B 3.2 B +9.5% 5.6% 3.0 B 5.0% 6.7% 2.6 B 4.1% 3.9% 4.2% 4.1% 2.5% 3.2% 3.2% 2.7% 2.5% 2.8% 2.1% 2.3% 5.0% 0.6% 1.6% 0.0% 2.5% 2.8% 3.9% 4
Slide 10: Selected Operating Data
2Q17 Selected Operating Data Evolution of occupancy cost Evolution of delinquency rate 13.7% 12.7% 12.6% 13.1% 12.8% 13.0% 4.0% 6.0% 12.7% 13.1% 13.0% 5.5% 5.2% 5.5% 13.1% 13.1% 5.4% 13.0% 5.5% 3.0% 2.0% 2.1% 5.4% 5.3% 5.4% 5.6% 5.6% 5.3% 1.5% 2.4% 7.7% 7.2% 7.4% 7.5% 7.4% 7.5% 1.3% 7.3% 7.8% 7.6% 7
Slide 11: Diversified Revenues
2Q17 Diversified Revenues Gross revenue breakdown in 2Q17 Rental revenue diversification: Top retail chains in 2Q17 25% Key Money 23% 0.5% Others 1 21% % of Rental Revenues 1.5% 19% Services 17% Base rent 7.6% 15% 88.7% 13% Rent 11% Parking 75.8% 9% 14.6% Merchandising 7% Top 10: Top 25: 7.6% 5% 12.
Slide 12: Rental Revenue Analysis
2Q17 Rental Revenue Analysis Rental revenue breakdown (R$), occupancy rate (%) and rent loss (%) 97.6% 98.2% 98.7% 97.8% 98.1% 97.8% 97.6% 98.4% 98.4% 97.6% 97.7% 97.6% 98.2% 98.7% 97.8% 98.1% 97.8% 97.6% 98.4% 98.4% 97.6% 97.7% 238.8 M 201.1 M 210.9238.8 M M 186.2 M 210.9 M 201.1 M 153.1 M 186.2 M
Slide 13: Net Operating Income (NOI)
2Q17 Net Operating Income (NOI) Evolution of properties expenses (R$) and as % of properties revenues¹ -1.5% 34.4 M 40000.1 34.2 M 33.6 M 35000.1 27.4 M 25.6 M 30000.1 25000.1 17.8% 20000.1 11.8% 13.0% 11.4% 10.1% 15000.1 10000.1 5000.1 0.1 2Q13 2Q14 2Q15 2Q16 2Q17 Evolution of Net Operating Income
Slide 14: Financial Results
2Q17 Financial Results Evolution of G&A Expenses (R$) EBITDA (R$) 26 0. 0M 24 0. 0M +8.7% +1.4% 212.3 M -4.4% 22 0. 0M 195.3 M 394.1 M 399.6 M -7.9% 20 0. 0M 68.9 M 65.9 M 37.0 M 18 0. 0M 74.9% 16 0. 0M 72.4% 71.8% 71.1% 34.1 M 14 0. 0M 12 0. 0M 10 0. 0M 2Q16 2Q17 1H16 1H17 2Q16 2Q17 1H16 1H17 Net I
Slide 15: Performance Since IPO
2Q17 Performance Since IPO Historical performance (R$ million) Jun-07 (LTM) IPO Jun-17 (LTM) Gross Revenue 320.2 4.0x 1,271.1 Net Operating Income (NOI) 196.3 5.2x 1,018.3 EBITDA 168.2 4.9x 823.8 Funds From Operations (FFO) 163.9 2.9x 482.2 Net Income 20.5 14.7x 302.0 Main financial metrics (R$ mill
Slide 16: Evolution of margins and owned GLA since the IPO
2Q17 Evolution of margins and owned GLA since the IPO 674,353 sq.m. 87.2% 81.3% 72.0% 57.5% 56.1% 42.2% 255,927 sq.m. 26.4% 7.0% Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 (12M) (12M) (12M) (12M) (12M) (LTM) (LTM) (LTM) (LTM) (LTM) (LTM) Owned GLA NOI Margin EBITDA
Slide 17: Debt and Cash
2Q17 Debt and Cash Debt indexes Debt indexes evolution Cash generation and debt position (R$) as of June 30, 2017 on June 30, 2017 2,989.5 M Others Others 6.9% 3.4% Financial Position Analysis ¹ Jun. 30, 2017 Net Debt/EBITDA 2.40x TR 1,973.7 M TR Gross Debt/EBITDA 3.63x 32.9% 42.0% EBITDA/ Net Finan
Slide 18: Debt Amortization Schedule and Covenants
2Q17 Debt Amortization Schedule and Covenants Evolution of Net Debt/EBITDA1 Financial Covenants Lowest Debt 4.00x Covenant ¹ Lim it Jun-17 Status covenant Volum e (4.00x) Net Debt/EBITDA <= 4.00x 2.40x 1,254.7 M Comply 3.00x EBITDA/Net Financial Expenses >= 2.00x 3.55x 429.4 M Comply 3.04x Total Deb
Slide 19: Recent transactions
2Q17 Recent transactions New Issue Dec-16 New Issue Jun-17 Type Real Estate Receivables (CRI) Type Real Estate Receivables (CRI) Amount R$300.0 M Amount R$300.0 M Price 95.0% of CDI Price 95.0% of CDI Interest Semi-annually Interest Semi-annually Term 6 years Term 6 years Amortization Bullet in 2022
Slide 20: Debt Amortization Schedule (R$)
2Q17 Debt Amortization Schedule (R$) Recent changes 90 0. 0M 807.4 M 80 0. 0M 2Q17 Before CRI and prepayment 70 0. 0M 2Q17 Actual Jul/17 After debt extension 60 0. 0M 507.4 M 504.1 M 50 0. 0M 425.6 M 435.6 M 407.4 M 404.1 M 404.4 M 405.3 M 40 0. 0M 341.2 M 325.6 M 30 0. 0M 265.9 M 241.2 M 235.6 M 20
Slide 21: Fair Value and Debt Analysis
2Q17 Fair Value and Debt Analysis as of June 2017 Fair Value of Investm ent properties and indebtedness June Unencumbered Unencumbered (R$ m illion) 2017 Total GLA properties Shopping Centers and office towers in operation 16,568 M Future Projects (announced) 417 M Encumbered 6 Encumbered Future Pro
Slide 22: Value Reserve
2Q17 Value Reserve Evolution of Fair Value¹ (R$) Fair Future projects (not disclosed) Value Properties under development (disclosed) Properties in operation Landbank Potential Projects 17.5 B 17.3 B Potential Area 15.0 B Land Location % Multiplan Project Type for Sale (sq.m.) 12.5 B BarraShoppingSul
Slide 23: Pipeline of projects to be delivered this year
2Q17 Pipeline of projects to be delivered this year Medical Center Expansion 6,200 sq.m. of GLA 2,300 sq.m. of GLA Delivered in August 2017 Opening in November 2017 Expansion Greenfield 3,800 sq.m. of GLA 48,000 sq.m. of GLA Openings in Nov-17 and May-18 Opening in November 2017 Source: Multiplan
Slide 24: Market Penetration
2Q17 Market Penetration Share of malls in retail sales 1 2 69% 62% 52% 53% 54% 52% 53% 54 25% 28% 21% 23% 16% 17% 18% 18% 18% 19% 11% 13% 14% 10% 28% 21% 23% 16% 17% 18% 18% 18% 19% 11% 13% 14% 10% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 FR AU MX US AS CD 2000 2001 2002 2003
Slide 25: IR Contact
2Q17 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) 3031-5600 Fax: +55 (21) 3031-5322 E-mail: ri@multi
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