Aliansce Investor Presentation

Transcription

1 Aliansce Investor Presentation 2014

2 Agenda Overview Financial and Operational Performance Growth Drivers Appendix

3 Overview 3

4 Portfolio Overview Aliansce owns an extensive and balanced portfolio of shopping malls, totaling thousand sqm of owned GLA Mature Assets (Malls with more than 5 years of operating history) Shopping Iguatemi Salvador Shopping Taboão Via Parque Shopping Shopping Grande Rio Carioca Shopping Shopping West Plaza New Generation Assets (Malls with less than 5 years of operating history) Bangu Shopping Santana Parque Shopping Caxias Shopping Indicates Aliansce s presence Shopping Santa Úrsula Boulevard Shopping Brasília Boulevard Shopping Belém Boulevard Shopping Belo Horizonte Boulevard Shopping Campos Parque Shopping Belém Boulevard Shopping Vila Velha Boulevard Shopping Nações Bauru Parque Shopping Maceió Shopping Parangaba Third Party Malls (Managed by Aliansce) Shopping Leblon Shopping Jequitibá Shopping Park Lagos Boulevard Shopping Feira de Santana Shopping Park Europeu Boulevard Shopping Vitória da Conquista* Pátio Alcântara Continental Shopping Passeio Shopping Santa Cruz Shopping Moinhos Shopping Floripa Shopping *Under Development São Gonçalo Shopping Boulevard Shopping Camaçari* 4

5 Portfolio Overview Controlling partner with an average ownership of 65.4% of its portfolio Operating Portfolio State % Aliansce GLA (sqm) Owned GLA (sqm) Occupancy rate (%) Services rendered Mature Assets - more than 5 years of operating history 67.80% 367, , % Shopping Iguatemi Salvador BA 70.79% 64,734 45, % M / L Shopping Taboão SP 78.00% 36,678 28, % M / L / SSC Via Parque Shopping RJ 73.39% 56,568 41, % M / L / SSC Shopping Grande Rio RJ 25.00% 37,060 9, % M / L / SSC Carioca Shopping RJ % 23,768 23, % M / L / SSC Shopping West Plaza SP 25.00% 33,593 8, % M / L / SSC Bangu Shopping RJ % 53,909 53, % M / L / SSC Santana Parque Shopping SP 33.34% 26,523 8, % M / L / SSC Caxias Shopping RJ 89.00% 25,558 22, % M / L / SSC C&A Stores n/a 69.05% 9,395 6, % n/a New Generation Assets - less than 5 years of operating history 62.46% 307, , % Shopping Santa Úrsula SP 37.50% 23,121 8, % - Boulevard Shopping Brasília DF 50.00% 17,043 8, % M / L / SSC Boulevard Shopping Belém PA 75.00% 39,441 29, % M / L / SSC Boulevard Shopping Belo Horizonte MG 70.00% 43,073 30, % M / L / SSC Boulevard Shopping Campos RJ % 24,755 24, % M / L / SSC Parque Shopping Belém PA 50.00% 29,964 14, % M / L / SSC Boulevard Shopping Vila Velha ES 50.00% 33,600 16, % M / L / SSC Boulevard Shopping Nações Bauru SP % 27,256 27, % M / L / SSC Parque Shopping Maceió AL 50.00% 37,578 18, % M / L / SSC Shopping Parangaba CE 40.00% 32,101 12, % M / L / SSC Total Portfolio 65.37% 675, , % (M) Management (L) Leasing (SSC) Shared Services Center 5

6 Portfolio Overview Outstanding track record of GLA growth: Proven execution capability Owned GLA Evolution (sqm - thousand) CAGR : +29.8%

7 Leading Developer Most active mall developer in Brazil Total GLA Developed in the last 8 years Average Age of Malls (GLA Weighted) x 1.5x 2.5x 41.6% of GLA is less than 5y old 15,6 15,8 18, , BR Malls Multiplan Iguatemi BR Malls Multiplan Iguatemi 14 shopping centers developed in less than 8 years 7

8 Shareholder Structure and Stock Performance Shareholder Structure Free Float 48,0% Management 2.7% Renato Rique¹ 21.7% CPPIB 27.6% Market Cap(2): R$3.2 bn ADTV60(2): R$5.4 mn Source: CVM and Bloomberg (1) Renato Feitosa Rique or legal entities controlled by him, directly or indirectly (2) Considering closing on August 26, Share price: R$

9 Financial and Operational Performance 9

10 Operating Highlights: Internal Growth Occupancy Cost Occupancy Rate with Openings 13,4% 9,9% 10,9% 9,7% 10,4% 9,5% 10,7% 9,9% 10,5% 9,8% Blvd. Brasília 97.3% Blvd. Belém Blvd. Belo Horizonte 98.1% 98.0% Parque Belém Blvd. Vila Velha Blvd. Bauru 97.2% 97.2% 95.7% Blvd. Campos 98.2% Pq. Shop. Maceió Shop. Parangaba 97,1% 1Q10 2Q10 1Q11 2Q11 1Q12 2Q12 1Q13 2Q13 1Q12 2Q14 3Q09 4Q09 2Q10 4Q11 2Q11 3Q11 2Q12 4Q12 2Q13 3Q13 4Q13 2Q14 Same Store Sales Growth (%) 12,9% 11,1% 10,3% 12,4% 10,1% 10,4% 11,9% 10,7% Outpacing peers for over 3 years 10,1% 8,6% 9,3% 7,7% 9,0% 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Aliansce BR Malls Multiplan Iguatemi 10

11 Operating Highlights: Internal Growth High Potential for significant Lease Spreads Leading ratio of SSS over SSR in the sector for at least 10 of the last 13 quarters Half of the portfolio will complete first 5 th year renewal in the next five years Strong sales growth will generate higher Leasing Spreads SSS growth of Aliansce has been outpacing SSR growth in the last 3 years 4 p.p. 2 p.p. 0 p.p. -2 p.p. -4 p.p. 0,7p.p. -1,2p.p. -2,2p.p. 1,6p.p. 1,2p.p. 1,8p.p. 1,8p.p. -0,8p.p. -1,5p.p. -1,2p.p. -1,3p.p. -1,1p.p. 0,7p.p. -6 p.p. -8 p.p. -10 p.p. 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Aliansce BR Malls Multiplan Iguatemi 11

12 Operating Highlights: Internal Growth High Potential for significant Lease Spreads At least one mall will complete five years of operating history in each of the next six years Occupancy cost of 9.8% in 2Q14 Percentage of Minimum Rent Revenues being renewed per year: SSS Average for the past years (1) Bangu 12.5% 9.1% 12.6% 3.6% 48.0% 15.3% Blvd. Belém 12.9% 19.2% 36.1% 7.7% 9.4% 7.5% Belo Horizonte 16.4% 5.9% 43.9% 9.0% 2.4% 9.2% Brasília 10.0% 19.7% 12.4% 17.1% 7.2% 6.0% Campos 23.1% 14.8% 0.9% 29.7% 3.2% 19.3% Carioca 7.4% 15.4% 11.4% 32.6% 19.9% 16.3% Caxias 13.8% 16.3% 5.0% 4.5% 5.5% 65.0% Grande Rio 10.1% 13.5% 14.7% 20.6% 14.8% 28.1% Iguatemi Salvador 7.1% 13.2% 15.8% 21.6% 20.3% 17.9% Parque Belém 27.0% 2.5% 0.0% 0.0% 54.9% 7.0% Santana 7.6% 10.0% 6.1% 5.7% 58.5% 14.5% Taboão 9.1% 6.6% 8.3% 9.3% 29.0% 28.0% Via Parque 11.7% 10.7% 8.8% 28.3% 10.5% 21.8% Bauru 26.3% 7.8% 3.1% 0.7% 44.4% 17.4% Vila Velha 21.3% 7.1% 1.4% 3.1% 35.6% 10.5% West Plaza N/A 18.8% 20.9% 13.0% 12.5% 18.5% Maceió N/A 2.3% 0.1% 0.4% 0.0% 49.9% Parangaba N/A 7.0% 0.5% 0.0% 0.0% 47.0% TOTAL 11.8% 14.1% 13.8% 20.5% 21.8% (1) Except: Parque Belém - Since opening in 2Q12 Bauru and Vila Velha - Since opening in 4Q12 HIGHLIGHT = First 5th year renew als 12

13 Operating Highlights: Internal Growth The three Malls opened in 2012 presented robust growth in the last 12 months 2012 openings: Parque Belém, Boulevard Bauru and Boulevard Vila Velha Represent 13.2% of owned GLA Average Occupancy Rate of 95.4% Operating Performance Growth 2Q14 vs. 2Q13 Indicators Parque Belém Boulevard Bauru Boulevard Vila Velha Same Store Rent (SSR) 12.7% 8.3% 18.8% Same Store Sales (SSS) 26.3% 25.5% 42.3% Occupancy Cost 10.2% 11.5% 7.6% Currency Occupancy Rate 96.2% 95.7% 94.6% Parque Belém Boulevard Bauru Boulevard Vila Velha 13

14 High Quality Assets Five assets representing 60% of Aliansce s 2Q14 NOI Iguatemi Salvador, Boulevard Belém, Bangu Shopping, Boulevard Belo Horizonte and Shopping Taboão Satellites Sales per sqm of R$ 2,102 Mature assets average age of 14 years with SAS of 8.4% in 1H14 Satellites Occupancy Cost of 12.5%, 1.1 pp below the average for the portfolio Sales/sqm - Satellites 14,5% Occupancy cost - Satellites 32.6% ,0% 13,5% 13,6% 1.1 p.p. below portfolio ,0% 12,5% 12,5% 12,0% 11,5% Portfolio Top 5 Assets 11,0% Portfolio Top 5 Assets Potential for future rent increases 14

15 Financial Highlights Net Revenue (R$ million) Gross Revenue Breakdown (%) 2Q14 CAGR : +29.5% 451 Growth: +14.1% Services rendered 7.8% Transfer fee 0.5% Parking 15.3% Rent 72.2% Minimum rent 80.5% Key Money 4.3% Stands / Kiosks 11.1% Percentage rent 8.4% Q13 2Q14 Gross Revenue 2Q14: R$133.6 million 15

16 Financial Highlights NOI (R$ million) Adjusted EBITDA (1) (R$ million) and EBITDA Margin (1) (%) CAGR : +32.5% Growth: +14.7% 67% 70% 71% 72% 73% 74% CAGR : +32.9% Growth: +15.1% Q13 2Q14 Adjusted FFO (2) (R$ million) Q13 2Q14 Capital Expenditure (R$ million) CAGR : +19.4% Q13 2Q Q13 2Q14 (1) Excludes non-recurring expenses (2) Excludes non-recurring items and non-cash items 16

17 Capital Structure Net Debt (R$ million) (1) Last 10 years - Low volatility of TR 195 Short-term Debt Long-term Debt Total Debt Cash Net Debt % TR IGP-DI CDI Breakdown Debt Indexes (%) Principal Amortization Schedule (R$ million) TR 68.2% IPCA 7.9% Fixed 3.8% TJLP 15.0% IGP-DI 5.1% 104,8 143,6 242,2 257,5 131,1 95, Average ² (1) As of June 2014 (2) Yearly Average 17

18 Growth Drivers 18

19 Growth Drivers Taking advantage of a young and highly occupied portfolio: Opening of 7 expansions by 2016YE Owned GLA growth (sqm) Capital Expenditure until CAPEX to Complete 2H E 2016E TOTAL (Amounts in millions of Reais) 8.4% Expansions Greenfields¹ Maintenance / Renovations Other Key money / Land swap² Total Actual 2014E 2015E 2016E End of Expenses for the conclusion of recently opened projects ² Monetization of excess land Expansions 19

20 Expansions 37.2 thousand sqm of owned GLA with expected opening until the end of 2016 Future Expansions Opening GLA (sq.m.) % Aliansce Owned GLA (sqm) Bangu Shopping 1Q14-2Q15 3, % 3,991 Carioca Shopping 4Q14 9, % 9,200 Caxias Shopping I 1Q15 7, % 6,828 Shopping Nações Bauru 2Q15 7, % 7,375 Shopping West Plaza 4Q15 3, % 794 Caxias Shopping II 2Q16 2, % 1,907 Iguatemi Salvador 4Q16 10, % 7,069 Total 43,556 37,164 7 expansions in malls with an average occupancy rate of 97.9% 20

21 Successful Development Track Record Paves Way for Growth Approximately 43.0% of owned GLA has less than 5 years of operating history and has not stabilized Case Study: Upside Potential of Younger Assets Cap Rate (1) NOI (R$ mm) (2) Shopping Centers Initial stake Opening GLA (sqm) Owned GLA (sqm) Bangu 70.0% Oct-07 43,975 30,783 Santana 50.0% Oct-07 21,962 10,981 Caxias 40.0% Nov-08 25,601 10,241 Brasília 50.0% Jun-09 16,925 8,462 10,1% 12,7% 14,6% 160,0 140,0 120,0 100,0 80,0 86,7% 83,0 89,4% 105,5 90,6% 124,3 90,0% 85,0% 80,0% Boulevard Belém 75.0% Nov-09 34,117 25,588 60,0 40,0 75,0% Belo Horizonte 70.0% Oct-10 43,064 30,145 20,0 Campos 50.0% Apr-11 19,000 9,500 1st Year 2nd Year 3rd Year 0,0 1st Year 2nd Year 3rd Year 70,0% NOI (R$ mm) NOI Margin Current IRR: 17.6% (1) Sum of the operating results of each year of the five shopping centers, divided by the sum of investments. Does not include expansions. (2) Sum of the operating results of the five shopping centers 21

22 Excess Land Portfolio has 807 thousand sqm of GLA to be monetized or for expansions Available construction potential for mix-use projects and future expansions in 14 of the 19 assets of the portfolio Main objective for mix-use projects is to monetize the construction potential, i.e. air rights Four Mix-use projects developed in 4 years Carioca Shopping Office Tower and Façade Caxias Shopping Office Tower and Hotel 22

23 Appendix 23

24 Sector Outlook Supply of shopping mall GLA in other countries far exceeds Brazil s (GLA / population in thousands) Avg. household income growth by income segment ( ) % 32.0% US Canada France Mexico Brazil 19.3% 4.1% 8.5% n.a. (1) High + High Mid Middle Low Mid + Low Avg. Income growth Avg. Disposable Income growth Brazil shopping mall sales and GLA evolution , Sales Growth Evolution 15.8% 16.0% 17.0% 18.6% 9.3% 10.0% 11.4% 10.7% 9.9% 8.1% 9.2% 9.7% 9.1% 5.9%10.9% 4.8% 6.2% 6.9% 8.4% 4.3% GLA (sqm million) Mall Sales (R$ million) Retail Shopping Centers Sources: ABRASCE, ICSC, BNDES, IBGE, Collins International, FGV and Cetelem Research Ipsos 2008 ; (1) Not meaningful because disposable income growth was negative in

25 Company Highlights Aliansce has the key strengths to replicate its operational excellence in the upcoming years Leading Developer Most active Developer in Brazil 14 shopping malls developed since 2006 New Generation Assets Significant portion of GLA with assets with less than 5 years of operating history Potential value creation: lease step-ups lead to faster growth of SSR Outstanding Growth Net Revenues 2Q12-2Q14: 38% Adj. EBITDA 1Q12-1Q14: 39% Diversified Portfolio Exposure to North and Northeast region, the fastest growing regions in Brazil Exposure to all income segments Efficient and Solid Capital Structure Efficient use of balance sheet Debt aligned with the company s cash flow with average maturity of 6 years 25

26 Balanced Portfolio with Exposure to All Income Segments Nationwide platform with important presence in the North and Northeast regions and within different income segments Exposure to Fast Growing Regions Exposure to All Income Segments Northeast 18% Owned GLA per Region North 10% Mid-West 2% Northeast 20% Southeast 70% Revenues per Region North 16% Mid-West 2% Exposure to North and Northeast Regions High growth regions with GDP growth 17% (1) higher than the Brazilian average, with increasing importance in the country s economy 28% of owned GLA in the North and Northeast regions Southeast 62% Portfolio Exposure to Consumers* (Total GLA in sqm) 402, , ,376 High Income High-Mid Income Middle Income * Some malls have exposure to more than one income segment Brazil s Disposable Income by Social Class (Total: R$1,275 billion) Exposure to Southeast Region Relevant presence in the Southeast, responsible for 55% of the Brazilian GDP Important major sports events in the upcoming years (World Cup 2014 and Olympic Games 2016) 16% 24% 31% 20% 8% Social Classes (1) From 2008 to

27 Fortress Malls positioned with the Emerging Middle Class Aliansce has seven fortress malls positioned with the Emerging Middle Class: (Shopping Taboão, Shopping Grande Rio, Carioca Shopping, Bangu Shopping, Caxias Shopping, Parque Shopping Belém and Shopping Parangaba) These malls in terms of Aliansce s Gross Revenues and Owned GLA represented 33.3% and 38.6%, respectively, in 2013 Operating Highlights Main Indicators Aliansce 2Q14 Middle Income Same Store Sales 9.0% 10.7% 1.7 p.p Same Store Rent 8.6% 10.5% 1.9 p.p Occupancy Rate 97.1% 98.4% 1.2 p.p Occupancy Cost 9.8% 8.8% -1.0 p.p Late Payments 3.4% 4.7% 1.3 p.p Parque Shopping Belém Shopping Grande Rio 27

28 Disclaimer This presentation may contain forward-looking statements that are subject to risks and uncertainties, because they are not statements of historical facts, but reflect the beliefs and expectations of our management as well as available information. Our statements are based largely on current expectations and projections about future events and financial tendencies that affect or may affect our business, and which may or may not materialize. Many factors could adversely affect our results as contained in our forward-looking statements. The forward-looking statements include information regarding results and projections, strategies, financing plans, competitive position, industry environment, potential growth opportunities and the effects of competition. Such estimates and projections refer only to the date they were made, and we assume no obligation to publicly update or revise any of these estimates in the light of new information, future events or other factors, subject to the applicable regulations. 28

29 Investor relations Renato Rique - President Henrique Cordeiro Guerra - Executive Director Renato Botelho - CFO Eduardo Prado - IR Superintendent Samantha Senna- IR Specialist Yan Oliveira - IR Analyst Phone.: +55 (21) ri@aliansce.com.br Website: V