Glossary

A

ABRASCE

Brazilian Association of Shopping Centers.

Additional Rent

The difference (when positive) between the minimum rent and rent based on a percentage of sales, pursuant to the rental agreements.

Adjusted EBITDA
Adjusted EBITDA means net income (loss) plus minority interest, income and social contribution taxes, net financial expense, depreciation and amortization and non-recurring expenses, net. Adjusted EBITDA is a non-GAAP accounting measure that Aliansce has reconciled to a Brazilian GAAP measure in accordance with one of the suggestions included in CVM Official Letter No. 01/2007. Adjusted EBITDA is not contained in its financial statements prepared in accordance with Brazilian GAAP. It is not an indicator of cash flow for the periods presented, and should not be considered as an alternative to cash flow or to net income or an indicator of the Company’s operating performance or liquidity. There is no standard definition of Adjusted EBITDA and Aliansce’s definition may not be comparable to Adjusted EBITDA, EBITDA or similar measures as used by other companies. Aliansce uses and present Adjusted EBITDA as a performance measure used by its management.

EBITDA + pre-operating expenses +/(-) other non-recurring expenses (revenues).

Adjusted FFO (Funds from Operations)
Net income controlling shareholders + depreciation + amortization + non-recurring expenses / (revenues) - straight line rent adjustment + stock option +/(-) non-cash taxes - capitalized interest + SWAP effect. 

Adjusted Net Income

Net income controlling shareholders + non-recurring expenses / (revenues) - straight line rent adjustment + stock option +/(-) non-cash taxes - capitalized interest + SWAP effect.

Anchor Stores
Large, well-known stores with special marketing and structural features that attract consumers, thereby ensuring permanent flows and uniform traffic in all areas of the shopping mall.

B

C

CAGR
Compound annual growth rate.

CCI/CRI

Real estate credit notes/Real estate receivables notes. 

CPC
Accounting Pronouncements Committee.

D

E

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)

Net revenue – operating costs and expenses + depreciation and amortization.

F

Federal Law 11,638: on December 28, 2007
Federal Law 11,638 was enacted with the purpose of including publicly-held companies in the international accounting convergence process. Consequently, certain financial and operating results were subject to accounting effects due to the changes introduced by the new law.

FIIVPS
Fundo de Investimento Imobiliário Via Parque Shopping, a real estate investment fund.

G

GCA (Gross Commercial Area)

Equivalent to the sum of all the commercial areas of the shopping malls, i.e. GLA plus store areas sold.

GLA (Gross Leasable Area)
Equivalent to the sum of all areas available for leasing in shopping malls, except for kiosks and sold areas.

Greenfield

Development of new shopping mall projects.

K

Key Money
Amount charged to merchants for the right to use the project’s technical infrastructure, applicable to contracts with terms longer than 60 months.

M

Management fee

Fee charged to tenants and other partners of the mall to defray management costs.

Mega Stores

Medium-sized stores (between 500 and 1000 sqm), which frequently have special marketing and structural features on a lesser scale than the anchors, but which still attract and retain customers. They are also known as “mini-anchors.”

Minimum Rent

The minimum rent of a tenant’s leasing agreement. 

MBS
Mortgage-backed securities.

N

Net Key Money
Key money net of leasing costs.

Net Late Payments

The ratio between total billed amount during the period and total revenue received for the same period, calculated 15 days after the end of the period.

NOI (Net Operating Income)
Gross mall revenue (excluding revenue from services) + parking revenue -mall operating costs - provision for doubtful accounts.

O

Occupancy Cost 

The leasing cost of a store as percentage of sales: rent (minimum + percentage) + common charges + marketing fund.

Occupancy Rate
Total mall GLA divided by the area leased at the end of the period in question.

Owned GLA
Refers to total GLA weighted by Aliansce’s interest in each shopping mall.

P

PDA
Provision for Doubtful Accounts.

Q

R

S

Sales

Reported product and service sales of stores in each of the shopping malls during the period, including kiosk sales. This includes 100% of each mall’s sales, regardless of Aliansce’s stake.

Sales/sqm

Sales divided by the sales reporting area in the period. This does not include kiosk sales, since such operations are not covered in the malls’ total GLA. This figure considers Aliansce’s stake in each mall.

SAR (Same-area rent)

Ratio between the rent earned in a same store in current versus the previous year. This figure considers Aliansce’s stake in all malls, except for Shopping Santa Úrsula.

SAS (Same-area sales)
Ratio between sales in the same area in the current versus the previous year. This figure considers Aliansce’s stake in all malls, except for Shopping Santa Úrsula..

Satellite Stores
Small stores (less than 500 sqm) with no special marketing and structural features located around the anchor stores and intended for general retailing.

SSR (Same-store rent)Ratio between the rent earned in the same store in the current versus the previous year. This figure considers Aliansce’s stake in all malls, except for Shopping Santa Úrsula.

SSS (Same-store sales)
Ratio between sales in the same store in the current versus the previous year. This figure considers Aliansce’s stake in all malls, except for Shopping Santa Úrsula..

T

Tenant Mix

Strategic composition of stores defined by the malls’ manager.

U

V

Vacancy

The mall’s gross leasable area available for rent.

W

X

Y

Z

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