By Brazil Stock Guide – Multiplan Empreendimentos Imobiliários SA (MULT3) reported a sharp rise in first-quarter earnings, supported by robust property sales and sustained demand across its shopping mall portfolio.
The Brazilian mall operator posted net income of R$316.1 million in Q1 2026, up 35.1% from a year earlier, marking the highest level ever recorded for a first quarter.
Multiplan (MULT3), one of Brazil’s largest shopping center operators, manages 20 malls totaling more than 900,000 square meters of gross leasable area and nearly 6,000 stores, alongside corporate real estate assets.
Real estate sales drive revenue surge
Gross revenue rose 54.1% year-on-year to R$879.9 million, largely fueled by a surge in property sales, which climbed 1,449.6% to R$300.9 million. The increase was mainly linked to the sale of a 10% stake in BH Shopping and progress in residential developments.
The BH Shopping transaction alone contributed R$285 million in revenue during the quarter.
Strong operational metrics
Tenant sales reached R$5.9 billion, rising 7.2% year-on-year, while occupancy rates climbed to 96.4%, reflecting strong demand for retail space.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 28.9% to R$516.5 million, setting a new first-quarter record for the fourth consecutive year.
Operating cash flow (FFO) grew 18% to R$327.5 million, underscoring the company’s ability to generate cash despite higher financial expenses.
Expansion strategy supports growth
Multiplan continued to expand its footprint, inaugurating a new phase at MorumbiShopping that added more than 13,000 square meters of leasable area. The project contributed to a 14.6% increase in sales at the mall.
The company plans additional expansions as part of a pipeline exceeding 157,000 square meters of potential new space.
Digital ecosystem gains traction
The company’s “Multi” app surpassed 10 million downloads and showed rising engagement, with over 75% of active users interacting with services or transactions.
Multiplan said the platform is increasingly central to its strategy, strengthening customer relationships and providing data insights for more than 4,000 retailers.
Balance sheet and leverage
Net debt stood at R$4.5 billion at the end of March, with a net debt-to-EBITDA ratio of 2.13x, reflecting improved leverage supported by higher cash generation.
The company maintained a disciplined capital allocation strategy, with capital expenditures totaling R$116.3 million during the quarter.
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