We enjoyed excellent operating performance in 2013, despite Brazil's slow economic growth, higher interest, inflation rates and weaker local currency. Our results further reaffirm the resilience of our business and especially our assets. Our history has shown that, despite moderate economic growth in recent quarters, we consistently record excellent operational and financial indicators.
We posted consistent growth in our total sales, reaching R$22.0 billion in the year, which represent growth rates of 12.1%. Same store sales (SSS) were in line with our expectations, with growth of 7.5% in the year, a slight increase from 2012.
We recorded NOI of R$1.2 billion in 2013, an increase of 16.6% from the year-ago period, with margin of 91.7%, which is our highest margin since 2009. Another line in which we posted strong growth was adjusted EBITDA, which surpassed R$1.0 billion in 2013, or 17x higher than at the end of 2006, in the early days of the company. We became the first and only Brazilian Mall company to surpass the mark of R$1.0 billion in EBITDA. Adjusted FFO was R$497.0 million in the year, increasing 18.2% from 2012, while adjusted net income came to R$487.0 million, up 18.9% from 2012.
Throughout the years we maintained our efforts to optimize common costs, enabling us to reduce the occupancy cost of tenants from 10.6% in 2012 to 10.4% in 2013. The low occupancy cost registered during the year contributed towards our malls to end the year with a vacancy rate of only 2.1%.
In 2013 we recorded a 24.3% Leasing Spread in our contract renewals, which reflects the strength of our assets and our revenue’s long term potential growth. Seeking to improve the experience of our consumers, our marketing department brought special moments to thousands of families through exclusive BRMALLS events, such as Disney, Galinha Pintadinha and Angry Birds. As a result of the high occupancy rate and enjoyable experience, our assets received over 470 million visitors during 2013.
We inaugurated 4 expansions in 2013. In the second quarter we inaugurated the expansion of Plaza Niterói located in Rio de Janeiro; in the third quarter the expansion of Natal Shopping, which is located in Rio Grande do Norte and in the fourth quarter we launched 2 expansions: Shopping Rio Anil, located in São Luís, Maranhão and Shopping Sete Lagoas, located in Minas Gerais. We inaugurated a total of 68 thousand m² of total GLA and 39.9 thousand m² of owned GLA.
In the fourth quarter we inaugurated our ninth Greenfield: Shopping Contagem in Minas Gerais, adding 34.9 thousand m² to our total GLA and 17.8 thousand m² to our owned GLA.
We concluded the year of 2013 with a total of 1,688.6 thousand m² of total GLA and 974.8 m² of owned GLA.
We envision that 2014 will be a challenging year to the Brazilian economy. However, we will work hard to strengthen the company internally and become more and more efficient in our operation and investments. In the third quarter we will launch Shopping Vila Velha, which is the company's largest greenfield project ever, which will open with over 71.7 thousand m² of GLA. We will also open 3 important expansion projects in 2014.
In 2013, net revenue was R$1,303.7 million, growing 16.0% from 2012.
We ended the year with NOI of R$1,207.2 million with a 91.7% margin, growing 16.6% from 2012.
We ended 2013 with adjusted EBITDA of R$1,055.4 million, growing 16.0% from 2012. EBITDA margin in 2013 was 81.0%.
In 2013, adjusted FFO was R$497.0 million, increasing by 18.2% from 2012.
The effects from the appraisal of our investment properties contributed with a revenue in the year of R$832.1 million.
Same-store rent grew by 9.8% in 2013, while same-store sales grew by 7.5% in the year.
We ended the year with an occupancy cost of 10.4%, of which 6.6% was related to rent costs and 3.8% to common and marketing costs.
We ended the year with an occupancy rate of 97.9% in our malls. Of the 52 malls in which we held ownership interests in the fourth quarter, 29 had occupancy rates higher than 99%.
We inaugurated the expansion of the Plaza Niterói Shopping in May with a total of 10.5 thousand m² of total and owned GLA, increasing the mall area in 31.3%. We estimate the project will generate R$22.2 million in stabilized NOI for BRMALLS.
Also in September the expansion of Natal Shopping was inaugurated adding 9.5 thousand m² of total GLA and 4.8 thousand m² of owned GLA to the mall. We estimate it will generate R$9.5 thousand in stabilized NOI for BRMALLS and a real and unleveraged IRR of 18%.
In October 2013, we launched the expansion of Rio Anil, which added 11.5 thousand m² in total GLA and 5.7 thousand m² in owned GLA to the mall, representing an increase of 43.6% and bringing the mall’s total GLA to 37.8 thousand m². We estimate the project will generate R$6.7 million in stabilized NOI for the company and a real and unleveraged IRR of 21.0%.
In November 2013, we announced the grand opening of Shopping Contagem, which is the company’s 9th greenfield project. With the opening, BRMALLS added another 34.9 thousand m² to total GLA and 17,8 thousand m² to owned GLA. We estimate the project will generate R$22.2 million in stabilized NOI for BRMALLS.
In December, we opened the expansion of Shopping Sete Lagoas, which added 1,5 thousand m² in total GLA and 1,1 thousand m² in owned GLA to the portfolio of BRMALLS. With this expansion, we expect to generate R$515.0 thousand in Stabilized NOI. The project was opened with a real and unleveraged IRR of 15.0%. The project increased the GLA of Shopping Sete Lagoas by 9.3%.
Our Dream
To be the biggest and the best shopping mall company of the world.
Our Values
Develop Owners
We hire, train and retain the best people and provide them with an environment in which they have responsibility, autonomy and feel like owners of the business.
Work with Simplicity and Agility
We have a simple, agile, flexible and transparent structure, and we respond quickly to opportunities and changes that occur in the market.
Perform with consistency and efficiency
We act with objectivity, sense of urgency, efficiency and humility, and consistently satisfy our clients and partners' expectations.
Prioritize Growth and Productivity
We are really focused in contributing to BRMALLS' growth, improving the company's productivity and profitability in the short and long term.
Focus on Results and Meritocracy
We work as a team and in a disciplined way in order to consistently exceed challenging goals, and allocate responsibilities and reward based on merit.
