Message from Management


Since the beginning of 2015, we were aware that it would be a challenging year, even more than those experienced in 2014. In addition to the economic crisis, we went through a political crisis that demanded an even greater effort on our side in order to achieve our goals. Despite the difficult scenario, we were able to adapt and demonstrate our focus and capacity to turn challenges into results. As in 3Q15, we reached our highest level of NOI/m² and Rent/m² in a fourth quarter, recording R$137/m² and R$109/m² respectively.

Our same-mall NOI grew by 6.2% in 2015. Over the year, we totaled R$22.5 billion in total sales, a 3.2% increase over 2014 (excluding the effects of asset sales). We managed to maintain our NOI and EBITDA margins at high levels and, once again, being the most efficient in the sector.

As in previous quarters in 2015, our total sales were impacted by a below average performance of the electronics segment. On the other hand, the leisure segment contributed positively to our results demonstrating its resiliency throughout the year despite the deteriorating retail scenario. Our performance this year reflects the dominance of our portfolio and our ability to attract footfall to our malls as a destination not exclusively for shopping, but also leisure and services, which is an important advantage of shopping malls over traditional street retail.

We remain confident with our growth strategy but aware of the difficulties and challenges imposed by the current political and economic challenges in Brazil. The approval process for our greenfield and expansion projects are still underway, and as they progress we will analyze all projects based on their commercial performance and the macroeconomic environment before initiating the construction phase.

We believe that 2016 will be an even more challenging year than 2015 but, in our view, tough times turns companies stronger and allow excellent companies to stand out from the rest. In order to prepare our assets for 2016 we will feature exclusive events through our partnerships such as Frozen, Star Wars, Luna, Peppa Pig among others. We will also organize group sales by store segment, trade marketing projects as well as training and development of our tenants.

Our dream is to become the largest and the best shopping mall company of the world and our actions and decisions are based in a long term planning. We believe that Brazil is going through an unfavorable economic cycle and that when the outlook starts to improve we will be stronger and better prepared to return to our average historical growth levels.