Multiplan Gains as Profit and Floor Space Rise: Sao Paulo MoverDenyse Godoy
Multiplan Empreendimentos Imobiliarios SA, Brazil’s second-biggest real estate developer by market value, gained the most in three weeks after saying profit rose as it expanded space available to lease by 28 percent.
Shares climbed 1.5 percent to 55.51 reais at the close of trading in Sao Paulo, the biggest advance since Jan. 29. Volume was 1.8 times the average of the past three months. The benchmark Bovespa index fell 0.5 percent.
Multiplan’s fourth-quarter adjusted net income rose 19 percent to 128.5 million reais ($65.5 million), from108.1 million reais a year earlier, data compiled by Bloomberg show. The total amount of space available to lease at its shopping malls and commercial buildings grew to 528,000 square meters (631,483 square yards) by the end of last year, from 411,700 square meters in 2011, according to a statement on its website.
The increase in available space shows Multiplan “wants to grow faster now,” analysts at Banco Bradesco SA’s brokerage including Edigimar Maximiliano wrote in a note to clients dated today. “We have a favorable view on this new strategy, given the company’s proven development capabilities and high-level portfolio,” they wrote.
The real estate company said today in a regulatory filing that it plans to sell as many as 9 million common shares in a primary offering. It didn’t set a date for the transaction.
Multiplan has soared 41 percent in the past 12 months, while the Bovespa dropped 13 percent.