Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Multiplan Empreendimentos Imobiliarios SA (MLTTY, Financial) successfully completed a major repurchase of participation from Ontario, approved by 99.9% of votes, indicating strong shareholder support.
- The company is launching significant expansions at DiamondMall and ParkShoppingBarigui, with nearly 100% of spaces allocated, showcasing robust demand and strategic growth.
- Digital strategy advancements, including the multi app and AI integration, have led to a 60% increase in usage, enhancing customer engagement and operational efficiency.
- Operational and financial results are showing consistent growth quarter on quarter, reflecting the company's strong performance and strategic initiatives.
- The company is celebrating its 50th anniversary with expectations of a strong fourth quarter, driven by events like Black Friday and Christmas, indicating a positive outlook for year-end results.
Negative Points
- The company faces risks and uncertainties related to forward-looking statements, which depend on economic and industry conditions that may not materialize as expected.
- Higher tax thresholds and interest on capital have impacted financial results, with uncertainties about how long these effects will persist.
- The company is undergoing significant refurbishments and expansions, which could disrupt operations and affect short-term financial performance.
- There is a need for continuous investment in reworks and expansions to maintain competitiveness, which could strain financial resources.
- The company is experiencing challenges in asset recycling and sales, with potential impacts on cash flow and strategic flexibility.
Q & A Highlights
Q: Can you provide insights on the sales growth and the impact of the Green Park tax?
A: Sales were strong, growing 9% year-on-year, with September being a highlight. October's preliminary sales show an 8.6% increase. Regarding the Green Park tax, the higher threshold was due to the interest on capital, which will be reconciled in the fourth quarter. (Armando D'Almeida Neto, CFO)
Q: With strong rent growth and decreasing occupancy costs, can you pass these benefits to tenants while maintaining growth?
A: Rent pressure requires economic growth for real gains. We are replenishing losses from negative periods and exploring asset recycling opportunities, depending on market conditions. (Eduardo Kaminitz Peres, CEO)
Q: How does the CapEx cycle look, and what is the impact of reworks on New York's performance?
A: The CapEx cycle will continue for about a year and a half to recover from the pandemic's impact. New York's performance is strong, with significant rent and sales growth, partly due to reworks. (Eduardo Kaminitz Peres, CEO)
Q: What are the company's priorities for growth and deleveraging strategy?
A: We see opportunities for operational growth and asset improvement. The company is naturally deleveraging, with potential asset sales like Jundiai contributing to this process. (Eduardo Kaminitz Peres, CEO and Armando D'Almeida Neto, CFO)
Q: Can you elaborate on the impact of delinquency recovery and real estate sales?
A: The positive mall environment aids rent recovery, reducing long-term delinquency. Real estate sales, like Golden Lake, will be reconciled upon project completion, with timing affected by external factors. (Armando D'Almeida Neto, CFO)
Q: What is the expected impact of Jundiai's sale and potential land sales on Q4 results?
A: Jundiai's sale will impact revenue and investment lines, with expectations for liquidation in Q4. Land sales depend on overcoming preceding conditions, with efforts to reconcile results soon. (Eduardo Kaminitz Peres, CEO)
Q: What are the expectations for the DiamondMall and Barigui expansions?
A: Both expansions focus on food, beverages, and international brands, enhancing the portfolio. We anticipate increased visitation and sales, with precise impacts to be seen post-launch. (Eduardo Kaminitz Peres, CEO)
Q: How do you balance expansion and rework CapEx moving forward?
A: We have ongoing expansions in Maceio and Morumbi, with ParkShopping Brasilia starting in January. Future projects include Jundiai and SaoCaetano, balancing expansion with necessary reworks. (Eduardo Kaminitz Peres, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
