SOURCE: BRMALLS Participacoes S.A.

August 06, 2009 11:06 ET

BRMALLS: 2Q09 Highlights and Subsequent Events

RIO DE JANEIRO, BRAZIL--(Marketwire - August 6, 2009) - Gross revenues totaled R$98.3 million, representing a 24.8% increase over 2Q08.

Consolidated NOI reached R$82.9 million, a 26.7% year-over-year increase, while the NOI margin increased from 90.7% to 91.9%. Same-property NOI increased 17.2% over 2Q08.

Adjusted EBITDA stood at R$73.1 million, 36.9% up on 2Q08, while the adjusted EBITDA margin improved significantly to 81.1%, versus 77.6% in 1Q09 and 73.9% in 2Q08.

We closed 2Q09 with net income of R$66.5 million, versus a net loss of R$7.9 million in 2Q08. Year-to-date net income totaled R$103.4 million, an R$111.3 million increase over the 2H08, with a net margin of 60.3%. EPS reached R$0.39 in 2Q09 and R$0.60 in 1H09.

FFO totaled R$81.1 million in 2Q09, an R$63.4 million increase over the same period last year, while AFFO (Adjusted Funds from Operations) reached R$50.3 million, 83.2% higher than 2Q08. AFFO/share reached R$0.29 in 2Q09 and R$0.53 in 1H09.

In April, we inaugurated the expansion of Caxias do Sul Shopping, which added 17,229 m² of GLA, more than doubling the previous 13,972 m². Goiânia Shopping expansion is in its final construction phase and during this year, we inaugurated the first and second phases of the project, accounting for over 56% of the expansion's total GLA. The project has 93% of its total GLA already leased.

Same-store rent (SSR) increase by 12.0% year-over-year.

Same-store sales (SSS) increased by 6.4% over 2Q08 compared to 3.5% in 1Q09. Satellite store sales continued to perform very well, recording growth of 9.4% over the same period the previous year.

The Company signed 352 leasing contracts in 2Q09, 56 of which related to our greenfield and expansion projects. Renewal and new contract leasing spreads for our existing malls averaged 13.9% and 15.9%, respectively.

In July, BRMALLS concluded a primary and secondary follow-on share offering, with the issuance of 30.3 million common shares on the Bovespa, raising R$446 million. In addition to providing funding for our growth strategy, the offering substantially increased share liquidity, raising our free float1 to 64%. BRMALLS' shares have been recording average daily traded volume of R$13.3 million, versus R$5.7 million before the offering (60-day average).

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