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 occupancy at 96.3% and net delinquency at 0.8%.

• Rental revenue grew 6.0% year-over-year, and EPS increased 44.1% compared to 1Q24, supported by share buybacks and capital allocation initiatives.

• Digital innovation advanced, with the Multi App surpassing 8.5 million downloads and a 73% increase in registered invoice value; loyalty programs and data-driven tools enhanced engagement.

• Continued investment in expansions and revitalizations, with 27,000 sqm of new area and major projects nearing completion.

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

Financial highlights

• NOI margin reached 94.2% and EBITDA margin 76.2% in 1Q25, both at record levels.

• Same Store Sales (SSS) grew 6.2% year-over-year, led by Apparel (+9.7%) and Home & Office (+12.2%).

• Parking and services revenues rose 10.2% and 14.5% year-over-year, respectively.

• Net income for 1Q25 was R$234.0 million, down 12.4% due to a 64.5% rise in financial expenses.

• FFO per share LTM up 39.2% to R$3.14; LTM net income reached R$1,307.8 million, up 21.1% year-over-year.

Outlook and guidance

• Lower renovation CAPEX expected in 2025 as major projects near completion; expansion of Parque Shopping Maceió scheduled for late 2025.

• Construction of Lake Eyre (Golden Lake phase 2) to begin in June 2025; Phase 1 delivery expected by end of 1H25.

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

• No anticipated cost increases or margin impacts from recent floods in Rio Grande do Sul; future results expected to improve.