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 net margin and double-digit growth in financial and operational indicators.

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

• 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 maintaining sales growth.

Financial highlights

• Net revenue grew 7.4% to R$539.7 million in 2Q24, with EBITDA up 11.3% to R$389.6 million and NOI margin at a record 92.0%.

• Net income for the semester reached R$548.8 million, up from R$454.4 million year-over-year.

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

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

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

Outlook and guidance

• Pipeline includes 7 mall expansions totaling 70,000 sq.m of GLA, with launches planned through 2H27.

• Golden Lake’s next phase (Lake Eyre) to launch in August, targeting a 30% gross margin.

• Management expects rent recovery as revitalizations conclude and inflation index turns positive.

• No liquidity issues foreseen, supported by strong net working capital and operating cash flow.

• Commitment to investing in Rio Grande do Sul and ongoing mixed-use project development.