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Introduction & Market Context
Multiplan Empreendimentos Imobiliários S.A. (BOVESPA:MULT3) released its second quarter 2025 earnings presentation, showcasing strong operational performance across its shopping mall and real estate development segments. Despite the company’s robust results, Multiplan’s stock saw a slight decline of 2.02% following the earnings release, closing at 21.37.
The Brazilian mall operator demonstrated impressive growth metrics in a challenging economic environment, with tenant sales significantly outperforming the broader Brazilian retail market during key shopping periods. This performance comes as Multiplan continues to execute its long-term growth strategy combining mall operations, real estate development, and digital innovation.
Quarterly Performance Highlights
Multiplan reported exceptional performance in Q2 2025, with tenant sales reaching R$6.3 billion, representing a 12.8% increase compared to the same period last year. The company maintained a high occupancy rate of 96.1%, up 12 basis points year-over-year, while achieving a record Net Operating Income (NOI) margin of 95.0%, an improvement of 300 basis points from Q2 2024.
As shown in the following comprehensive performance overview, the company demonstrated strength across multiple operational and financial metrics:
Particularly noteworthy was Multiplan’s outperformance compared to the broader Brazilian mall market during key shopping periods. During Mother’s Day, Multiplan’s malls saw sales growth of 21.3% compared to just 6.0% for Brazilian malls overall. Similarly, for Valentine’s Day, Multiplan achieved 11.1% growth versus 5.6% for the broader market.
The following chart illustrates this sales growth trend and Multiplan’s market outperformance:
Same Store Sales (SSS) grew by 10.9% overall, with particularly strong performance in the Food Court & Gourmet Area (+14.0%) and Apparel (+11.9%) categories. Renovated malls showed especially impressive results, with BarraShopping leading at +15.0% SSS growth.
The company also achieved its lowest occupancy cost since its IPO, dropping to 12.6% compared to 13.0% in Q2 2024. This metric, which measures rent and common expenses as a percentage of sales, indicates improved profitability for tenants and creates potential for future rent increases.
Revenue Growth and Segment Performance
Multiplan’s gross revenue increased by 27.2% compared to Q2 2024, driven by strong performance across all business segments. The real estate for sale segment was particularly impressive, growing by 134.7% to reach R$171.3 million.
The following chart breaks down the revenue growth by segment:
Rental revenue, which represents the core of Multiplan’s business, grew by 8.4% to R$427.5 million. Same Store Rent (SSR) increased by 9.3%, with a real SSR growth of 3.5% on top of a 5.7% IGP-DI adjustment effect, as shown in this analysis:
Parking revenue and services revenue also showed strong growth at 17.3% and 16.4% respectively, contributing to the overall robust performance.
Real Estate Development Success
Multiplan’s real estate development segment has emerged as a significant growth driver, with the Golden Lake project showing strong sales momentum across both phases. Golden Lake Phase 1, launched in October 2021, has already sold 73.4% of its units, representing R$409.2 million of the R$560 million Potential Sales Value (PSV).
The following image shows the current status of the Golden Lake Phase 1 development:
Meanwhile, Golden Lake Phase 2, which was launched in September 2024 and began construction in May 2025, has already sold 63.0% of its units, equivalent to R$224.2 million of the R$350 million PSV. This rapid sales pace highlights the strong demand for Multiplan’s residential developments.
Here’s a visual representation of the Golden Lake Phase 2 project:
Capital Structure and Shareholder Returns
Multiplan has maintained a stable capital structure while delivering significant returns to shareholders. The company’s net debt to EBITDA ratio stands at 2.27x as of June 2025, a level that provides financial flexibility while maintaining conservative leverage.
The company’s debt amortization schedule is well-structured, with manageable repayments spread over the coming years, as illustrated in this capital structure overview:
Multiplan has been actively returning capital to shareholders, with R$2.0 billion in share buybacks over the last 12 months and R$545.0 million in dividends distributed during the same period. These shareholder-friendly actions have boosted earnings per share by 36.9% year-over-year to R$2.64 and FFO per share by 32.8% to R$3.08.
The following chart shows the positive impact of share buybacks on per-share metrics:
In terms of capital allocation for Q2 2025, Multiplan reduced its Capex by 44.7% to R$149.4 million as several renovation and expansion projects were completed. This allowed for increased shareholder returns through Interest on Capital (IoC) payments, which rose to R$120.0 million in Q2 2025.
Strategic Initiatives and Digital Innovation
Multiplan continues to invest in digital innovation to enhance customer experience and provide valuable insights to tenants. The company has unified its digital channels (Multi, MultiVocê, and Acesso Multi) into a single integrated platform called "multi," which has accumulated nearly 9 million downloads and has driven a 49% increase in sales at Multiplan’s malls.
The company has also launched a "Know Your Customer" channel that shares data with tenants to generate insights and improve results. This tool provides personalized insights based on data captured by the Multi app, including information on consumption patterns, store participation in visits, and purchasing profiles.
Forward-Looking Statements
Looking ahead, Multiplan is well-positioned for continued growth with its balanced approach to capital allocation, focus on operational excellence, and strategic investments in both physical and digital assets. The company’s Enterprise Value (EV) currently stands at 58% of its Fair Value, suggesting potential for stock price appreciation as the market recognizes the underlying value of Multiplan’s assets.
While the company faces challenges from economic volatility in Brazil that could impact consumer spending and tenant sales, its strong operational metrics, high occupancy rates, and diversified revenue streams provide resilience. The successful execution of real estate development projects like Golden Lake also offers additional growth avenues beyond the core shopping mall business.
With its consistent long-term growth trajectory, Multiplan has demonstrated impressive compound annual growth rates across all key metrics from 2007 to June 2025, including Sales (+10.7%), Gross Revenue (+12.5%), NOI (+13.6%), EBITDA (+14.7%), FFO (+20.7%), and Net Income (+26.5%). This track record suggests the company is well-equipped to continue delivering value to shareholders despite near-term market fluctuations.
Full presentation:
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