By Brazil Stock Guide – Shopping mall operator Multiplan SA (B3: MULT3) is emphasizing balance-sheet discipline after a temporary rise in leverage following its purchase of an additional 15% stake in BarraShopping, one of its flagship assets. CEO Eduardo Peres told analysts during the 3Q25 call that the company’s current debt ratio is “above the ideal level” for Brazil’s interest rate environment but reflects a strategic, one-off opportunity.
“This leverage isn’t ideal for current rates, but it won’t increase,” Peres said. “Funding will come from cash generation and selective debt, not from equity issuance.” The CEO added that Multiplan remains focused on long-term value creation and operational efficiency rather than financial engineering.
Debt Structure and Funding Profile
Peres revealed that the R$350 million transaction to buy the additional stake pushed leverage higher, but the company’s financing strategy remains conservative. CFO Armando d’Almeida noted that Multiplan issued R$500 million in 10-year debentures at 98% of CDI during the quarter — evidence, he said, of the market’s confidence in the company’s credit quality. “Even with higher debt, our cash flow generation remains strong, supported by operational efficiency and solid rent collection,” he said.
Margins and Efficiency at Record Levels
Excluding real estate development, Multiplan’s property EBITDA margin reached between 80% and 83%, one of the highest in its history. The figure was boosted by negative net delinquency, record occupancy, and cost discipline. D’Almeida emphasized that the company’s model — combining active management, tenant curation, and recurring rent growth — continues to produce resilient cash yields despite a high-rate environment.
Capex Cycle Nearing Completion
Executives said the company’s heavy investment cycle is winding down, with major revitalization projects at BarraShopping and Pátio Savassi (Belo Horizonte) nearly complete. As a result, capex is expected to decline in 2026, allowing Multiplan to gradually reduce leverage while keeping flexibility to reinvest in smaller expansions such as Maceió (Nov 2025) and Morumbi in São Paulo (Mar 2026).
Cautious Growth Strategy
Analysts from Morgan Stanley and Goldman Sachs pressed management on how long high margins can last and whether leverage could climb again. Peres replied that growth will continue, but “without compromising returns.” “Multiplan never stops, but we know when to pace ourselves,” he said. “We grow with discipline, preserving margins, liquidity, and long-term sustainability.”