Multiplan Empreendimentos Imobiliários (MULT3) Q1 2025 earnings summary

Executive summary

• Achieved record first-quarter sales of R$5.5 billion, up 7.9% year-over-year, with five malls posting double-digit sales growth and robust tenant sales, especially in expanded and revamped malls.

• Occupancy rate rose to 96.3%, the highest in five years, with net delinquency at 0.8% and lower turnover, indicating retail stability and high demand.

• Earnings per share increased 44.1% year-over-year, supported by revenue growth, operational efficiency, and share buybacks.

• Continued investment in mall expansions and digital innovation, with the Multi App surpassing 8.5 million downloads and loyalty programs driving engagement.

• Net income for Q1 2025 was R$234.1 million, down 12.4% year-over-year, impacted by a 64.5% rise in financial expenses.

Financial highlights

• Gross revenue grew 1.3% to R$571.1 million; net operating revenue up 0.4% to R$525.7 million.

• Rental revenue increased 6.0% year-over-year to R$409.2 million; parking and services revenues rose 10.2% and 14.5%, respectively.

• NOI margin reached a record 94.2%, and EBITDA margin improved to 76.2%.

• FFO per share LTM up 39.2% to R$3.14; EPS increased 44.1% year-over-year.

• Net income for Mar-25 LTM was R$1,308 million, with a CAGR of 21.1% since 2007.

Outlook and guidance

• Lower renovation CAPEX expected in 2025 as major revitalizations conclude; most major projects to finish by end of 2025.

• Expansion of Parque Shopping Maceió scheduled for late 2025, adding 5,500 sqm and 45 stores; Golden Lake Phase 1 delivery by 1H25, Phase 2 construction starts June 2025.

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

• Positive sales momentum expected to continue, supported by strong tourism and retail demand.