Multiplan Empreendimentos Imobiliários (MULT3) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw sales of BRL 5.5 billion, up 7.9% year-over-year, with strong operational and financial performance, especially in expanded and revamped malls.

• Occupancy rate reached 96.3%, with net delinquency at 0.8% and lower tenant turnover, indicating retail stability and high demand.

• Digital innovation advanced, with the Multi App surpassing 8.5 million downloads and loyalty programs boosting engagement.

• Corporate governance improved with new independent board members and reinstatement of the Fiscal Council.

• Major land and asset transactions, including sales and acquisitions, impacted cash flow and asset base.

Financial highlights

• Earnings per share grew 44.1% year-over-year, with FFO per share up 39.2%.

• NOI margin reached 94.2% and EBITDA margin 76.2% in Q1 2025.

• Services, parking, and rental revenues showed significant growth, with parking up 10.2% and services up 14.5% year-over-year.

• CapEx for expansions and revitalizations was 13.9% lower year-over-year, reflecting project completions.

• Net operating revenue reached R$525.7 million, with consolidated net income at R$234.1 million.

Outlook and guidance

• April 2025 sales estimated 16.3% higher than April 2024, indicating continued momentum.

• Optimism for continued strong sales and rental growth, supported by robust tourism and favorable macro trends.

• Expectation of reduced CapEx in coming quarters as revitalization cycle concludes.

• No impairment identified for investment properties; fair value remains well above book value.

• No anticipated cost increases or margin impacts from recent floods in Rio Grande do Sul.