Multiplan Empreendimentos Imobiliários (MULT3) Q2 2024 earnings summary

Executive summary

• Net income grew 14% year-over-year in 2Q24, reaching R$281.7 million, with record margins and double-digit growth in financial and operational indicators.

• Tenants' sales reached R$5.6 billion, up 6.3% year-over-year, with all malls growing and five achieving double-digit growth.

• Digital engagement surged, with 12 million accesses and 2 million downloads of the Multi app in the last 12 months, and new features driving user growth.

• Sustainability initiatives advanced, including 100% renewable energy use and a 42% reduction in Scope 2 emissions.

• Despite severe weather in Rio Grande do Sul, key assets remained resilient, providing shelter and posting sales growth.

Financial highlights

• Net revenue grew 7.4% to R$539.7M in 2Q24, with EBITDA at R$389.6M (+11.3%) and NOI at R$434.7M (+14.0%), both with record margins.

• Net income reached R$281.7M (+14% YoY), with a margin of 52.2% for the quarter.

• Real estate for sale revenue surged 187.2% to R$73M, mainly from Golden Lake and land sales in Ribeirão Preto.

• EPS increased 28.2% over the last 12 months, with over R$800M returned to shareholders.

• CAPEX for the first semester was BRL 410 million, with total investments of R$270.1M in 2Q24.

Outlook and guidance

• Pipeline includes 7 mall expansions totaling 70,000 sq.m of GLA, with openings from 2H24 to 2H27 and several mixed-use projects in development.

• Positive outlook for rent recovery as revitalization works conclude and inflation index turns positive.

• Golden Lake’s next phase (Lake Eyre) to launch in August, with strong sales momentum and 30% gross margin target.

• Commitment to investing in Rio Grande do Sul despite recent climate events.

• Expectation of reduced provisioning due to improved tenant health and sales environment.