SOURCE: BR MALLS Participacoes S.A.

BR MALLS Participações S.A.

March 10, 2010 22:09 ET

BRMALLS Announces Adjusted EBITDA of R$ 110.0 Million in 4Q09, Growth of 36.6% Over 4Q08, With an Adjusted EBITDA Margin of 85.1%

RIO DE JANEIRO, BRAZIL--(Marketwire - March 10, 2010) -  BRMALLS Participações S.A. (BOVESPA: BRML3), the largest integrated shopping mall company in Brazil, announces today its results for the fourth quarter of 2009 (4Q09). BRMALLS has a portfolio of 35 malls, comprising 1,035.6 thousand m² of gross leasable area (GLA) and 467.2 thousand m² of owned GLA. The Company currently has five greenfield projects under development and seven expansion projects, which, together, will increase its total GLA to 1,267.6 thousand m² and its owned GLA to 621.9 thousand m². BRMALLS is the largest shopping mall company in Brazil with a nationwide presence that caters to all income segments. The Company provides management and leasing services for 26 malls, in 25 of which it retains an interest, with total GLA of 756.6 thousand m². 

All the financial and operational information below is in Reais (R$), and comparisons refer to the fourth quarter of 2008 (4Q08), except where otherwise indicated. The complete financial statements in accordance with the accounting practices and norms required by the CVM (Brazilian Securities & Exchange Commission) are available at the end of this report.

The company has adopted in advance the directives of the Brazilian Accounting Pronouncements Committee (CPC) in accordance with Law 11638/11 and CVM Deliberation 603. The main effects on our results were: (a) the straight-lining of base rent and key money; (b) the appraisal of investment properties at their fair value; (c) the subsequent recognition of deferred taxes (income tax and social contribution on net income).

4Q09 Highlights and Subsequent Events

- Net revenues totaled R$129.2 million in 4Q09, 27.6% up year-on-year, and R$392.6 million in 2009, 23.1% more than in 2008.

- Consolidated NOI reached R$120.8 million in 4Q09, 28.1% higher than in 4Q08, and R$362.1 million in 2009, 25.9% up from the year before. The NOI margin expanded from 91.8% in 4Q08 to 92.0% in 4Q09 and from 90.4% in 2008 to 91.9% in 2009. Same-property NOI grew by 16.6% in 4Q09 and by 16.3% in the full year. 

- EBITDA in 4Q09 totaled R$1.4 billion, up 59% compared to the previous year and R$1.6 billion in 2009. Adjusted EBITDA stood at R$110.0 million in 4Q09, 36.6% up on 4Q08. The EBITDA margin also improved, increasing from 79.5% to 85.1%. In 2009, adjusted EBITDA came to R$319.4 million, 32.9% over the previous year, while the EBITDA margin increased from 75.3% to 81.4%. 

- The effects of adjusting the fair value of investments contributed with a non-cash operational revenue of R$1.2 billion, versus R$771.2 million in 4Q08. Deferred taxes impacted our net income negatively in R$426.1 million for 4Q09 and R$265.4 million for the year before. 

- AFFO totaled R$85.3 million in 4Q09, 39.9% up from 4Q08, and R$233.0 million in 2009, increasing 67.4% from 2008. AFFO/share stood at R$0.42 in the fourth quarter and R$1.15 in 2009. 

- We sold 22% and 21% stakes in the Granja Vianna and Sete Lagoas projects, respectively. As a result, Granja Vianna and Sete Lagoas' IRR increased from 17.0% to 18.1% and from 17.9% to 18.8%, respectively.

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