BR Malls Defies Brazil Real-Estate Rout on Quarterly Revenue

BR Malls Participacoes SA rose, defying a rout in most Brazilian real-estate companies in Sao Paulo trading, after third-quarter revenue exceeded analysts’ forecasts.

Brazil’s biggest owner of shopping centers rose 0.3 percent to 18.55 reais at the close. MRV Engenharia & Participacoes SA led homebuilders lower after economists cut their forecasts for the country’s economic growth. The benchmark Bovespa index dropped 2 percent.

BR Malls said net revenue rose 67 percent from a year earlier to 219.3 million reais ($129.4 million), overshadowing a 90 percent plunge in profit after the decline in the real sparked a financial loss, according to an Oct. 28 statement after the market closed. The sales result compares with an average forecast of 202.4 million reais in a Bloomberg survey of 10 analysts. Net income was 9.33 million reais, the company said.

“We continue to view BR Malls as one of the best-managed companies under our coverage, well positioned to take advantage of the positive environment for the Brazilian shopping mall industry,” David Lawant, an analyst at Itau Unibanco Holding SA in Sao Paulo, wrote in a report yesterday, reiterating his “outperform” rating on the stock.

JHSF Participacoes SA, which also operates malls, climbed 0.9 percent to 4.41 reais. MRV, Brazil’s fifth-biggest homebuilder by revenue, tumbled 6.1 percent to 12.10 reais as the BM&FBovespa Real Estate Index declined 3.1 percent.

Economists covering Brazil cut their forecasts for gross domestic product expansion in 2012 for a third straight week. GDP will grow 3.5 percent next year, according to the median forecast in an Oct. 28 central bank survey of about 100 economists published today, down from a forecast of 3.51 percent the previous week.