The Iguatemi shopping center network had a net loss of R$133.3 million in the second quarter of 2022, which represents a turnaround in comparison with the same period in 2021, when the company reported a profit of R$317.9 million.
The origin of the loss lies in the participation that Iguatemi holds in Infracommerce, a technology company for retail, whose shares are depreciated on the stock exchange.
The fall in the shares was in the order of 70% in the last 12 months so far. This caused an accounting loss (with no effect on cash) of R$ 258.1 million on Iguatemi’s balance sheet in the second quarter of this year.
Not counting the result from Infracommerce and other items with no direct effect on cash (such as straight line), Iguatemi presented an adjusted net income of R$ 55.4 million, an increase of 166% on the same annual comparison basis.
Ebitda (earnings before interest, taxes, depreciation and amortization) was R$ 166.6 million, an increase of 61%. The Ebitda margin grew 5 percentage points to 65.7%.
Adjusted FFO (net income excluding depreciation, amortization and non-cash effects) reached R$94.2 million, an increase of 58.4%. Adjusted FFO margin rose 2.3 percentage points to 37.2%.
Costs and expenses increased 23.9% to R$99.4 million.
The financial result (balance between financial income and expenses) was negative by R$ 100 million, that is, an expense four times greater.
Net revenue totaled R$ 253.6 million, up 48.8%, influenced by the increase in revenue from rents charged to tenants and revenue from parking lots with the highest flow of visitors. In addition, the retail operation, represented by i-Retail and Iguatemi 365, generated revenue of R$32.3, an increase of 49.4%.
Iguatemi evaluated that the operation of the malls has been showing good results since the beginning of the year, with the recovery of retail after two years under the negative effects of the pandemic. The company also noted that the end of mandatory use of masks also helped to attract visitors to shopping centers.
With the improvement in sales, the company continued to withdraw discounts on rent from tenants and transferred inflation to contracts.
Total sales at Iguatemi’s 16 malls were R$4.3 billion in the second quarter of 2022, a record for the quarter. This represents an expansion of 56% compared to the same period in 2021 and an advance of 30.2% compared to the same range of 2019 (pre-pandemic), as announced in its operational preview.
The company reported a 56.2% increase in same-store rents compared to the pre-pandemic period. In June, this mark hit 59.1%, indicating that the readjustments in the contracts are practically in line with the accumulated inflation of 61.3% in the last three years (from 2019 onwards, considering the IGP-M).
Even with the increase in rents, there was an improvement in collection indicators. Net bad debt was negative at 2.3%. This means that the company recovered more amounts in arrears than suffered defaults in the month.
The occupancy of the malls reached the mark of 93.6% of the leasable area, which represents an increase compared to the 90.1% registered a year earlier. Occupancy cost for tenants (measured as a percentage of sales) was 11.3%, down from 12.8% a year earlier.
Source: CNN Brasil
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