Earnings Release

3Q• 2021	years

Earnings

Release

	Index
1.	LETTER FROM MANAGEMENT	3
2.	3Q21 HIGHLIGHTS	4
3.	MAIN FINANCIAL AND OPERATIONAL INDICATORS	5
4.	3Q21 OVERVIEW	6
5.	STUDY CASE: MEDIA	10
6.	DIGITAL INITIATIVES	13
7.	P&L	15
8.	PROJECTS UNDER DEVELOPMENT & CAPITAL STRUCTURE	21
9.	CAPITAL MARKETS	22
10. APPENDIX	23

11.	GLOSSARY	32
12.	CONFERENCE CALL	33

3Q

2021

Rio de Janeiro,

November 11th, 2021

• BRMALLS Participações S.A. (B3: BRML3), announces today its results for the third quarter 2021.

2

Letter From Management

The advance of the vaccination program in Brazil, throughout the third quarter, brought excellent prospects for the Brazilian population and allowed for an important recovery of results for brMalls. We had another quarter of consistent improvement in financial and operating indicators, with important upsides compared to 2Q21, pointing to the overcoming of metrics from pre-pandemic periods.

As a sign of this resumption, in September we reached Base Rent revenue above pre-pandemic levels, and we highlight the same store rents (SSR) which, this month, reached 19.8% versus 2019. This growth was possible given the scenario more favorable sales, which in October surpassed the same period in 2019 and greater efficiency in the management of common costs.

In 3Q21, we reported a 1.0 p.p. reduction in occupancy costs, associated with the resumption of sales combined with greater efficiency in the cost of merchandizing fund and, mainly, of common costs, a reduction that should remain around 10% below the 2019 levels next year.

In the quarter, NOI reached R$280.0 million, 52.4% higher than 3Q20 and 1.8% lower than 3Q19, reaching an excellent margin of 90.6%. More than 10 malls showed positive NOI growth, with emphasis not only on malls in the North, Northeast and Midwest but also on mature assets such as Plaza Niterói and Del Rey, which shows the resilience of a strong portfolio. The context of recovery, together with the normalization of internal processes, also allowed for the recovery of late payments and, as a result, in 3Q21 we reached a Net Late Payments rate of 4.8% versus 7.7% in 3Q20.

The reduction of government restrictions allowed greater movement of consumers, who promptly returned to our malls in search of shopping, entertainment and socialization. We also highlight the strong relationship and trust of tenants in the brMalls portfolio, and in September we reached an occupancy rate of 97.6%, higher than in 3Q19.

Resumption of Operations: during 3Q21 we operated with 100% of assets open and operating hours at 97.9% of normal volume (in October, 100%). Customer flow, still reflecting restrictions on entertainment, cinemas and events, reached in September 78,6% of pre-covid levels and sales in the quarter reached 94.5% of 2019 levels.

Strengthening of Assets and Commercial Strategy: we continued to make progress with the strengthening of our assets through revitalization, attraction of new anchors, renewal of the mix and strengthening of gastronomy. In this report, we present the case of Shopping Del Rey, where the change in mix, with the entry of important restaurants, brought an increase of about 15% in the flow of consumers to the project and 13% in annual sales.

Digital Strategy: in 3Q21 we had important improvements in omnichannel, loyalty program and digital media pillars. The engagement of consumers and tenants with the relationship program has been increasing and during the quarter we reached 18% penetration of GMV identified on a granular basis (CPF's level), achieved in the top 4 NOI that have the relationship program. We expanded the coverage of brMalls' online sales channels, which in 3Q21 showed growth of 139% in GMV versus 2Q21.

Digital Media / Monetization: This quarter we acquired 100% of Helloo Mídia, a company specialized in media commercialization in residential building elevators. The investment, in addition to accelerating our growth, will enhance the relationship with our consumers in the areas of influence and will increase the dominance of brMalls malls. We see media as an important avenue for growth and monetization of our digital strategy; In this release, we present our ambition in media, details about the acquisition of Helloo and the operation of mídiaMALLS (a subsidiary dedicated to media commercialization in own and third-party malls).

We have high expectations for the Black Friday and Christmas season in the coming months and we are making great moves in the evolution of our business model. We are grateful for the trust of our customers, shareholders and the dedication of all brMalls employees.

Ruy Kameyama, CEO

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3Q21 Highlights

• In 3Q21, hours of operation totaled 97.9% of regular hours. Since October, malls have returned to operate at 100% of their regular hours.
• We maintained occupancy rate at high levels (97.2%), an increase of 0.9 p.p. versus 2Q21 and 1.7 p.p. versus 3Q20. The evolution of the indicator reflects the high pace of sales throughout the year, which demonstrates the strength of the portfolio and the confidence of tenants in our malls.
• Total sales responded to restrictions' reduction, ending 3Q21 close to 2019 levels and with a 45.0% increase versus 3Q20. In October, we observed a total sales level higher than 2019 level.
• Same store rent (SSR) reached 10.5% in the quarter and registered 19.8% in September. In June, SSR was -0.1% when compared to 2019, demonstrating the fast evolution of rental bases. In the quarter, we also increased condominium and marketing fund lines efficiency, which resulted in a lower occupancy cost level when compared to levels performed in previous periods of the year.
• In 3Q21, mídiaMALLS expanded its business model and started to operate in a new media vertical, the residential media, through the acquisition of 100.0% of Helloo. The acquisition is part of the Company's strategy, contributing to: (i) expanding brMalls' malls dominance in the areas of influence; (ii) developing new revenues with high growth potential; (iii) monetizing the relationship with consumers, retailers and advertisers.
• In this quarter, in addition to the increase in the number of members in the relationship program - we reached 237 thousand active members in the 8 malls in which the program is implemented, a growth of 76.0% versus 2Q21 - there was also an increase in the GMV captured and in customer engagement, which reached more than 20.0% of penetration in some malls. This result shows that we are identifying a relevant part of malls' purchases, not only at product, but also at client level.
• Net revenue totaled R$ 306.6 million, an increase of 47.6% when compared to 3Q20. With the restrictions' reduction and the resumption of operations, it was possible to observe the recovery of rental revenue over 2021 months. In May, linearized base rent revenue level was at 2019 level, and in September it exceeded by 7.5% the values presented in the same period of 2019.
• NOI reached R$ 280.0 million in 3Q21, 52.4% higher than in 3Q20, and presented a margin of 90.6%, 4.0 p.p. above 3Q19, reflecting the increase in operational revenues and the Company's cost efficiency.
• Adjusted EBITDA totaled R$ 189.4 million, with a margin of 61.8%, 5.9 p.p. above 3Q20.
• Adjusted FFO totaled R$ 107.0 million, with a margin of 34.9%, 12.8 p.p. above 3Q20.
• Share buyback program: In order to optimize capital allocation, a share buyback program of up to 42,186,434 shares and that will last up to 12 months, was approved in September 2021. This number of shares represents 5% of the total outstanding shares in the market.

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Main Indicators

Financial

	3Q21	3Q20	%	3Q19 ¹	%		9M21	9M20	%	9M19 ¹	%
Net Revenue	306,638	207,753	47.6%	319,042	-3.9%	809,641	689,265	17.5%	912,694	-11.3%
NOI	280,004	183,718	52.4%	285,018	-1.8%	718,664	579,287	24.1%	823,240	-12.7%
margin%	90.6%	87.7%	2.9 p.p.	86.6%	4.0 p.p.	88.9%	85.2%	3.7 p.p.	87.2%	1.7 p.p.
Adjusted EBITDA	189,444	116,033	63.3%	239,336	-20.8%	500,686	371,353	34.8%	680,864	-26.5%
margin%	61.8%	55.9%	5.9 p.p.	75.0%	-13.2 p.p.	61.8%	53.9%	7.9 p.p.	74.6%	-12.8 p.p.
Net Income	57,149	7,810	631.7%	*	*	690	(493,342)	-100.1%	*	*
Adjusted Net Income	94,784	37,500	152.8%	*	*	227,927	177,770	28.2%	*	*
margin %	30.9%	18.1%	12.8 p.p.	*	*	28.2%	25.8%	2.4 p.p.	*	*
Adjusted FFO	107,019	45,948	132.9%	*	*	260,884	201,859	29.2%	*	*
margin %	34.9%	22.1%	12.8 p.p.	*	*	32.2%	29.3%	2.9 p.p.	*	*
Adjusted FFO per share	0.13	0.05	133.9%	*	*	0.31	0.24	29.5%	*	*

Operational

	3Q21	3Q20	%	3Q19	%		9M21	9M20	%	9M19	%
Core Portfolio Total GLA (m²) ¹	1,197,568	1,197,568	-	1,197,568	-	1,197,568	1,197,568	-	1,197,568	-
Core Portfolio Owned GLA (m²) ¹	813,015	813,015	-	794,976	2.3%	813,015	813,015	-	794,976	2.3%
Adjusted GLA (m²) ²	1,057,941	904,076	17.0%	1,120,039	-5.5%	1,032,185	851,563	21.2%	1,289,264	-19.9%
Same Store Sales	37.9%	-32.6%	70.5 p.p.	2.2%	35.7 p.p.	21.9%	-34.5%	56.4 p.p.	2.8%	19.1 p.p.
Same Store Sales (% of 2019)	-8.4%	-32.6%	24.2 p.p.	-	-	-22.9%	-34.5%	11.6 p.p.	-	-
Core Portfolio Total Sales (R$ million)²	4,276	2,948	45.0%	4,524	-5.5%	10,554	7,517	40.4%	13,290	-20.6%
Sales per m²	1,347	1,087	23.9%	1,379	-2.3%	1,136	981	15.8%	1,323	-14.1%
Same Store Rent	87.7%	-40.1%	127.8 p.p.	7.6%	80.1 p.p.	71.6%	-41.3%	112.9 p.p.	7.7%	63.9 p.p.
Same Store Rent (% of 2019)	10.5%	-40.1%	50.6 p.p.	-	-	-0.8%	-41.3%	40.5 p.p.	-	-
Rent per m² (monthly average)	96	70	37.4%	101	-4.8%	87	76	14.6%	98	-11.1%
NOI per m² (monthly average)	113	75	51.0%	120	-5.6%	97	79	23.3%	115	-15.3%
Occupancy Cost (% of sales)	11.5%	10.5%	1.0 p.p.	10.9%	0.6 p.p.	12.8%	12.8%	0.0 p.p.	11.2%	1.6 p.p.
(+) Rent (% of sales)	7.0%	5.6%	1.4 p.p.	6.2%	0.8 p.p.	7.4%	6.4%	1.0 p.p.	6.3%	1.1 p.p.
(+) Condominium and Marketing Expenses (% of	4.5%	4.8%	-0.3 p.p.	4.7%	-0.2 p.p.	5.4%	6.4%	-1.0 p.p.	4.9%	0.5 p.p.
sales)
Occupancy Rate (monthly average)	97.2%	95.5%	1.7 p.p.	97.0%	0.2 p.p.	96.6%	96.2%	0.4 p.p.	96.9%	-0.3 p.p.
Net Late Payments	4.8%	7.7%	-2.9 p.p.	0.0%	4.8 p.p.	11.9%	5.5%	6.4 p.p.	1.6%	10.3 p.p.
Late Payments - (monthly average)	14.3%	12.5%	1.8 p.p.	4.7%	9.6 p.p.	20.9%	9.4%	11.5 p.p.	6.2%	14.7 p.p.
Tenant Turnover	5.0%	6.2%	-1.2 p.p.	7.3%	-2.3 p.p.	5.0%	6.2%	-1.2 p.p.	7.3%	-2.3 p.p.

• For the 2019 analysis, we exclude the result of the 7 malls sold in August/19 and the result of Via Brasil Shopping, divested from in March/20.
  ² Only considers stores that report their sales. Adjusted GLA is used to calculate Sales/m².
  * As disclosed in the August 5th, 2019, conference call and presentation, as of the 3rd quarter of 2019, we exclude Shopping Araguaia and São Luís Shopping from all operational indicators presented above, with the exception of Total GLA and Owned GLA.
  ** "Core Portfolio" refers to the Company's portfolio at the end of 3Q21, excluding Shopping Araguaia and São Luís Shopping.

5