Glossary

Investor Services Glossary

A

Adjusted Net Income: Net income adjusted for non-recurring expenses with the IPO, restructuring costs and amortization of goodwill from acquisitions and mergers (including deferred taxes).

Anchor Stores: Large, well known stores with special marketing and structural features that can attract consumers, thus ensuring permanent attraction and uniform traffic in all areas of the mall. Stores must have more than 1,000 m² to be considered anchors.

B

Brownfield: Expansion project.

C

CAGR: Compounded Annual Growth Rate. Corresponds to a geometric mean growth rate, on an annualized basis.

CAPEX: Capital Expenditure. Correspond to the estimated resources to be disbursed in asset development, expansion or improvement. The capitalized value shows the variation of ‘property and equipment’ added of depreciation.

CDI: (“Certificado de Depósito Interbancário” or Interbank Deposit Certificate). Certificates issued by banks to generate liquidity. Its average overnight annualized rate is used as a reference of interest rates in Brazilian Economy.

D

Debenture: debt instrument issued by companies to borrow money. Multiplan’s debentures are non-convertible, which means that they cannot be converted into equity shares. Moreover, a debenture holder has no voting rights.

Deferred Income: Deferred key money and store buy back expenses.

Double Rent: Extra rent charged from the majority of tenants usually in December due to higher sales in consequence of Christmas and extra charges on the month.

E

EBITDA Margin: EBITDA divided by Net Revenue.

EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization. Net income (loss) plus expenses with income tax and social contribution on net income, financial result, depreciation and amortization. EBITDA does not have a single definition, and this definition of EBITDA may not be comparable with the EBITDA used by other companies.

EPS: Earnings per Share. Net Income divided by the total shares of the Company.

Equity Pickup: Interest held in the associate will be shown in the income statement as equity pickup, representing the net income attributable to the associate’s shareholders.

Expected Owned GLA: Multiplan’s proportionate interest in each shopping mall, including projects under development and expansions.

F

Funds from Operations (FFO): Refers to the sum of adjusted net income, depreciation and amortization.

G

GLA: Gross Leasable Area, equivalent to the sum of all the areas available for lease in malls, excluding merchandising.

Greenfield: Development of new shopping center projects.

I

IBGE: The Brazilian Institute of Geography and Statistics.

IGP-DI Adjustment Effect: Is the weighted average of the monthly IGP-DI increase with a month of delay, multiplied by the percentage GLA that was adjusted on the respective month.

IGP-DI (“Índice Geral de Preços - Disponibilidade Interna”): General Domestic Price Index. Inflation index published by the Getúlio Vargas Foundation, referring to the data collection period between the first and the last day of the month in reference, with disclosure date near the 20th of the following month. It has the same composition as the IGP-M (“Índice Geral de Preços do Mercado”), though with a different data collection period.

IPCA (“Índice de Preços ao Consumidor Amplo”): Published by the IBGE (Brazilian institute of statistics), it is the national consumer price index, subject to the control of Brazil’s Central Bank.

K

Key Money (KM): Key money is the money paid by a tenant in order to open a store in a shopping center. The key money contract when signed is accrued in the deferred revenue account and in accounts receivable, but its revenue is accrued in the key money revenue account in linear installments, only on the occasion of an opening, throughout the term of the leasing contract. Nonrecurring key money from new stores, of new developments or expansions (opened in the last 5 years), ’Operational’ key money from stores that are moving to a mall already in operation.

L

Landbank: Areas acquired by Multiplan for the development of future projects.

M

Management Fee: fee charged from tenants and partners/owners to fund the shopping center administrative expenses.

Merchandising: consists of all leases in a mall not involving the GLA area of the mall. Merchandise includes revenue from kiosks, stands, posters, leasing of pillar space, doors and escalators and other display locations in a mall.

Minimum Rent (or Base Rent): Minimum rent paid by a tenant for a lease contract. Some tenants sign contracts with no fixed base rent, and in that case minimum rent corresponds to a percentage of their sales.

Mixed-use: Strategy based on the development of projects that integrate shopping centers with office and residential developments.

N

Net Operating Income (NOI): Refers to the sum of the operating income (Rental revenue and shopping expenses) and income from parking operations (revenue and expenses). Revenue taxes are not considered. The NOI + KM also includes the key money revenues in the same period.

New Projects Expenses for lease: Pre-operational expenses from shopping center greenfields, expansions and office tower projects. Refers to the portion of the CAPEX which is recorded as an expense in the income statement as determined by the CPC 04 pronouncement in 2009.

New Projects Expenses for sale: Pre-operational expenses generated by real estate for sale activity. Refers to the portion of the CAPEX which is recorded as an expense in the income statement as determined by the CPC 04pronouncement in 2009.

NOI Margin: NOI divided by Rental Revenue and net parking revenue.

O

Occupancy cost: Is the occupancy cost of a store as a percentage of sales. It includes rent and other expenses (condo and promotion fund expenses).

Occupancy rate: Leased GLA divided by total GLA.

Organic Growth: Revenues growth which is not generated by acquisitions, expansions and new areas added in the period.

Overage Rent: The difference paid as rent (when positive), between the base rent and the rent consisting of a percentage of sales, as determined in the lease agreement.

Owned GLA: or Company's GLA or Multiplan GLA, refers to total GLA weighted by Multiplan’s interest in each mall.

P

Parking Revenue: Parking revenue is the net result of parking fees collected by the shopping centers less the amounts transferred to the Company’s partners and condominiums.

Potential Sales Value (PSV) or Total Sell Out: Refers to the total number of units for sale in a real estate development, multiplied by the list price of each.

S

Sales: Sales reported by the stores in each of the malls.

Same Area Rent (SAR): Rent of the same area of the year before divided by the area’s rent of the current year, less vacancy.

Same Area Sales (SAS): Sales of the same area of the year before divided by the area’s GLA less vacancy.

Same store Rent (SSR): Rent earned from stores that were in operation for over a year.

Same store Sales (SSS): Sales of stores that were in operation for over a year.

Satellite Stores: Small stores with no special marketing and structural features located around the anchor stores and intended for general retailing.

Straight Line Effect: Accounting method that has the purpose of removing volatility and seasonality of minimum lease revenue. The criterion adopted to account for revenue rent is based on straight-line revenues during the effectiveness of the contract, regardless of the receipt term.

T

Tenant Mix: Portfolio of tenants strategically defined by the shopping center manager.

TJLP (“Taxa de Juros de Longo Prazo”, or Long Term Interest Rate): The usual cost of financing conceived by BNDES.

TR (“Taxa Referencial”, or Reference interest rate): Average interest rate used in the market.

Turnover: GLA of operating malls leased in the period divided by total GLA.

V

Vacancy: GLA of a shopping center available for lease.


Shopping Center Segments:

  • Food Court & Gourmet Areas – Includes fast food and restaurants operations
  • Miscellaneous – Cosmetics, bookstores, hair salons, pet shops and etc
  • Home & Office – Electronic stores, decoration, art, office supplies, etc
  • Services – Sports centers, entertainment centers, theaters, cinemas, medical centers, banks operations, and etc.
  • Apparel – Women and men clothing, shoes and accessories stores


Acronyms:

BHS BH SHOPPING BRS BARRASHOPPING
BSS BARRASHOPPINGSUL DMM DIAMONDMALL
NYCC NEW YORK CITY CENTER MBS MORUMBISHOPPING
PKS PARKSHOPPING PSS PÁTIO SAVASSI
PKB PARKSHOPPINGBARIGÜI SAF SHOPPINGANÁLIAFRANCO
SSU SHOPPINGSANTAÚRSULA RBS RIBEIRÃOSHOPPING
SVO SHOPPINGVILAOLÍMPICA PSC PARKSHOPPINGSÃOCAETANO
JDS JUNDIAÍSHOPPING PCG PARKSHOPPINGCAMPOGRANDE
VLG VILLAGEMALL PQM PARQUE SHOPPING MACEIÓ

 

Last updated on 2016-02-26T11:59:15
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