Good morning. Welcome everyone to the third quarter 2021 earnings conference call. Today we have José Isaac Peres, CEO, Mr. Armando d'Almeida Neto, CFO and IRO, Mr. Marcello Barnes, CIO, and Mr. Hans Melchers, Planning and Investor Relations Director. We inform that the presentation of the results will be available for download at the website. Today's webcast will be present and may be accessed through Multiplan's website at ri.multiplan.com.br. We would like to inform you that this event is recorded and that all participants will be in a listen-only mode during the company's presentation. After Multiplan's remarks, there will be a Q&A session. At that time, further instruction will be given should any participant need assistance during this call, please press star zero to reach the operator.
Before proceeding, let us mention that forward-looking statements are based on briefs and assumptions of Multiplan management and on information currently available to the company. They involve risks and uncertainties because they relate to future events that are therefore dependent on circumstances that may or may not occur. Investors should understand that conditions related to macroeconomic scenarios, industries, and other factors could also cause to differ materially from those expressed in such forward-looking statements. This teleconference will last for 60 - 70 minutes. After this period, the investor relations team will be available if any questions have not been answered. Now I would like to give the floor to Mr. José Isaac Peres, CEO, and he will begin the presentation. Please, the floor is yours.
Hello everyone. Ladies and gentlemen, and everybody who is listening to us, I will start.
Once again, it is a great pleasure to be with you. Now this is a very special moment for Multiplan. We've spent two years in crisis when most of the shopping malls were closed for over six months, and they were reopened with restrictions. Nonetheless, Multiplan would like to celebrate with you some of the landmarks that show the strength of our company through our trajectory. Let's celebrate first. BarraShopping is 40 years old. It shows no strength and capacity to renovate our enterprises. In the third quarter, this shopping mall registered BRL 583 million in sales, 3.3% above the same period in 2019 actually, and 28.9% compared to the same period in 2020. But we have very expressive numbers here that you can take into consideration. That for the period 3.3 for the period of 2019, of course.
It could have been 28.9 in the same period as 2020, as I already stated. BarraShopping also has a great turnover and new stores and new operations. November 18th, we are going to talk about ParkJacarepaguá, which is our newest enterprise. We are certain that on the 18th of November, we will finish ParkJacarepaguá. We have it with 95% of ABL, 95% of the leasable area. Our results can be compared to those of 2019. 2020 was a challenge, but let's talk about a good year of growth, which was 2019, before the pandemic. The revenue for rent has grown 19.7% in comparison to the same period of 2019. This is the biggest volume that we already reached in the third quarter, getting to a record of BRL 290 million, BRL 290.7 actually million.
If we compare apples and apples, oranges and oranges, then the growth at the stores on the same basis, if we compare it to 2019, it would be even larger. The previous growth was 28.4%. If we exclude, here is another important exercise. The real estate activity, which is at the core of this company, was always the core of this company. If we exclude that, the revenue would grow 103.1% in comparison to the third quarter of 2020. The EBITDA, we finally get a growth of 37.9%. The FFO already surpasses the third quarter of 2019, and it advances a whopping 162.8%. Eight shopping malls of the company had operational growth above the sales of 2019. Let's take, for example, Village Mall, which grew 17.1% in comparison to 2020 and 26.3% in regards to 2019.
Our total sales have grown, and we got to BRL 3.7 billion, 168.3% if we compared to 2020. If we have a normal year, 2019, it would have been 98.3%. This is what you're hearing. The sales are strong, and they're servicing a demand that is actually a repressed demand for over 24 months. People are now finally leaving their homes, and we can see that that demand is being serviced by the shopping malls. Today, the malls have a harmonious area for social interaction, and they're located in the main centers, the main cities of the country. This makes the company to be able to continue to growth in a very sustainable way, in my opinion. In 25 days since we started the month of October, we already surpassed 10% the sales in the same period of 2019. Actually, 9.7% to be exact.
The interest in the tenants, they are talking to us, obviously. The interest has surpassed our expectations with the allocation of 132 stores. The growth in that occupancy rate was higher than the previous quarter, and it was the highest since 2012. Our occupancy rate has grown to 95.2%, and we believe that in the next quarter, it will be ever larger. I believe that we're going to get to that frontier of the almost 100% that we already had in the past. The occupancy rate, I already talked about the 95.2%, but it is very important to notice that many of these stores are migrating also and are moving to the shopping mall from the digital world. This shows the importance of the shopping malls, shopping centers, which are located in strategic areas close to the distribution centers.
If you just take Barra Shopping, we receive 2.5 million people per month. Per year is 30 million people in a single shopping center. With ParkJacarepaguá, we are going to grow, and we are going to get close to servicing even the total population in all of our malls, the total population of Brazil, which is close to 200 million people. Our flow of people here is the same as 2019, even though it's not a permanent one. I would like to highlight a few things that we are very proud, our innovations. We are always adapting to the current needs of our clients and our customers. ParkJacarepaguá already shows an evolution in the concept of a shopping mall, more adapted to the current conditions and the longings of our customers. It is integrated with nature.
That greenery already occupies 36,000 sq m of the real estate. We are going to have areas for relaxing, for children to play. Now we are repeating what we did already with Canoas, now in a way that we are more integrated because the park is inside of the shopping mall. The area built of the shopping mall is 100,000 sq m, and I believe that ParkJacarepaguá will be one of the most impactful shopping malls that was ever built in our country, and it will be a new threshold in the market. On the other hand, we have to also take into consideration that our actions have a very strong social. They strike a social nerve. We invested BRL 50 million in public works to make the shopping mall more viable and to provide a better environment for the population. We actually invested. We built a bridge.
We doubled avenues. We installed modern lighting, public lighting. We built a great landscaping along many public highways, public ways. It is important to mention that this mall will generate 4,000 direct jobs and 4,000 indirect jobs. This is a lever for development for the region, and we are regenerating an area where 800,000 people live, and this is one of the oldest neighborhoods in Rio de Janeiro. I would say that it's one of the most. The Western Zone is maybe the most populated region of Rio de Janeiro. This is where we started with Barra Shopping, and we started with servicing 40,000 people, and now we have millions of people that go there. Now, if you think about the times of the empire, this is a very old region and it was forgotten.
Now with this new model, with this shopping mall, we are regenerating, revitalizing the region. Now we're going to have the valuation, obviously, an increase in the value of the surrounding real estate. That's what is expected. Well, that was a strategy from the company to consolidate our leadership and our presence in the western zone of Rio de Janeiro. But in this region, we have several shopping malls that basically service over 20,000 people in jobs. Now, let's go back to our origins, our roots. We are doing a great real estate enterprise, the Golden Lake. It is a unique project in the country. In a way, it surpasses all of our expectations. Even, the ones that we started establishing 30 years ago in Rio de Janeiro. Golden Lake is a unique project.
It will be the first closed neighborhood, a private neighborhood in Porto Alegre with 18 towers, residential towers. It will be integrated to Barra Shopping Sul, and it is all around the rescue. We are providing a great valuation for the area of the Guaíba Bay. This is a project that was developed for many years, and it has a revenue predicted for BRL 4 billion. The first stage, if I am not wrong, we did the official launching. We have 30% of the sales already done. This is a stage of the project, which is BRL 524 million, and sales are corresponding to BRL 162 million. We are always adapting to the new demands of our clients, and this is a continuous process, a permanent process in all of our enterprises, residential and commercial.
This process involves digital innovation, and also you have to take into consideration our great app, Multi, and constant innovations in the mixed architecture and the concept of our malls. We are always adapting to the new times. In that sense, I would like to highlight actually, the innovation at the global level introduced by Multiplan 27 years ago at BarraShopping, where no shopping mall had a medical center. We built a medical center 27 years ago, and now we have 42 integrated clinics that service 300,000 people per month with exams and appointments. This is a great relevant service for the population and for everybody that goes in this mall. Many times we know of the suffering in the post-pandemic world, where the population needs psychological support. We are implementing a new concept, a pioneering concept, even at the international level.
We will launch in November in Ribeirão Shopping, the first management center for emotions in a shopping mall. The shopping mall is MultiSer. The center is called MultiSer, I apologize. It was developed in a partnership with the psychiatrist Augusto Cury, and it will benefit the region of Ribeirão Preto. It will address that issue of that unmet need of the psychological support for the population. For many years, we have paid attention to the environment, and we have worked with product services and leisure in that sense. We worked on pleasure, on the assets and fun, but now we believe that we can also take care of something that is so subjective but ever so fundamental and essential, which is the soul of human beings.
This is obviously a pilot project, and we hope to be able to expand this, extend this to all the shopping malls of the company, reinforcing Multiplan's commitment with the social well-being of the population. You are all invited in November to get to know this unique experiment in the world, which is to bring psychotherapy at an accessible level, at a social level. Our shopping malls are here to stay. They substitute the old boulevards, and they became the great point for meeting up for the Brazilian society. I would say the main one. Over the last few months, regardless of the difficulties, we were always pleased with the strong recovery and payment in interest rates of BRL 270 million over our own capital. We distribute this to our shareholders in October.
We continue to trust in our growth based on quality, innovation, and to be in the forefront of our projects. We expect a Christmas that will be exceptional with results that are better than we had before.
Thank you very much for the opportunity to address all of you. Once again, thank you for your support of all of our team, all of our tenants, all of our investors, and the municipal authorities which also support us. Well, dear friends, we are very pleased to be able to create another innovation that if it works correctly, it will be a historical landmark. Thank you very much to you all.
Now we are going to go to the Q&A session. Thank you. Now we will start the Q&A session for shareholders, investors, and analysts. Should you have any questions, please type asterisk one.
If your question has been answered, you can leave the virtual line by typing asterisk two. We will answer the questions in order. Please speak over the phone when you ask the question so we can offer the best quality of sound. Please wait while we collect the questions. Our first question is from Aline Caldeira, Bank of America.
Hello, everyone. Thank you very much for accepting my question. A little bit of occupancy costs. Since the beginning of the pandemic, you have been operating at a condominium level, then the improving, well, lower occupancy that. In the third quarter you charged more. Now there is Christmas, and now you have almost 100% of the full-time. What about the condominium costs and occupancy and promotion? We have a new normal level for the company or not yet?
We have not reached a new normal.
Aline. Hello, good morning.
This is Armando. Thank you very much for your question. I am certain that many of the efficiencies that were adopted for 2020, they will remain and will have a very positive effect. We're still working on several projects, and we have shown improvements, efficiencies in the use of systems. We surely hope to keep this reduction in the rates for a prolonged period for many of the cases. But obviously, as you have the return to the normal working hours and all those issues, this applies into more expenses. For example, the entries of the malls that were closed, now they're open. You need more security and other things to make everything work. But all throughout time, we hope to see an efficiency, yes. To keep the efficiency. I hope that answered the question.
Yes, very clear. Thank you.
I would like to mention something that is extremely relevant. We are talking about the cost reduction, and it's important that Marcello will answer this better. We are now using this enterprise, and we are installing the solar panels in the shopping mall that will reduce the cost of condominium costs and other technical things that we're adding in terms of the reduction of the cost, partial at least cost. ParkJacarepaguá will have 16,000 square meters of the solar panels for solar energy. Besides that, all of the air conditioning system is intelligent and therefore we have a reduction. Taking for the example of Canoas, which was the lowest cost of the network, it will have the lowest occupancy. That is the threshold, the lowest occupancy rate in our network.
During the pandemic, all of our shopping malls, they are in the free market of energy, which has a reduced tariff that is fixed all throughout a very long period of time. So we are reducing the operational costs. If you'd like, we can have a listing here from Hans and all the synergies and all the investments that we've seen in our last malls to be able to reach those condominium reductions. Yes. Well, maybe a lot of these investments, actually, we have to be focused on the environmental aspect, not only sustainability in the sense of economics, but also we have to think about the environmental sustainability. Well, we have even solar energies to service and lower the condominium cost, for example, in many of our enterprises.
Thank you.
Next question will be from Alex Ferraz from Itaú BBA.
Hello, good morning, Dr. Peres, Armando.
Thank you for your presentation. I actually have two questions. The first question is related to Aline Caldeira's question, but more specifically regarding ParkJacarepaguá, well, rent for sales. Very strong in comparison to 2019. We have positive numbers already, but still below the threshold. As a combination, the occupancy continued. We have to understand with the talks that you have with the tenants, the rent, are they seeing a stronger recovery in the sales? How do you have those conversations with the tenants? The turnover. We have seen a turnover in this quarter, and there is new appetite for new areas. I wanted to see if there is any returns of. We wanted to see your opinion on what is going to be the recovery over the next quarters.
Hello, good morning. This is Armando d'Almeida Neto. Let's talk about the turnover.
We are very pleased to see that we have a high turnover. If we see the turnover 8%, sometimes we had the turnover 2%-3%. We had many years that the turnover was much lower. I am very happy to actually see a turnover that is so high, because it shows a strong and vigorous economic activity. We see people looking for the best real estate in retail. We can see consumers here. José Isaac Peres already talked about the number of our clients, customers that are growing in ParkJacarepaguá since the opening. We have a consumer that is qualified. They connect to the stores that they are looking for. Many banks, for example, in shopping malls as well. This makes us very optimistic for the future, specifically because you can have a reduction, a high reduction in those vacancies.
If we look at the operations and there is a rent, of course, that is aligned with the type of properties that we offer. It does not matter just occupying the space and saying that your vacancy is lower. You have to occupy the space with an operation that is the best operation possible for that specific spot and with a rent that services our portfolio. That is the first phase of your question, the first part of your question, the difference between the rent in one store and, I apologize, the rent and sales in the same areas all throughout time. We are living in an active process and we have an acceleration of inflation. This is not a typical process of living with values of discounts. That is not common.
They were not common in our portfolios, and they are reducing with the return of the operation with the normality. We can see that as a factor that is very specific to the times. When you look at the agendas and you look the numbers of October 25th in a quarter, it was almost 10% thus far. You see that there are shopping malls, portfolios that have growth of 30%. Average was 10%. You can see, yes, you can see a strong recovery of the activity. This allows for the month of October to have the highest volume of sales for our tenants, the highest in our history of our company. 2019 was the record. For 2020, of course, we had the restrictions and we saw a drop in sales.
Now with the growth above 2019, we have a new record for sales, a new record for the company and our tenants in the month of October. With the strong campaign for vaccination of the population, that has been very successful in Brazil, and with the reduction of the number of cases and the easing of restrictions all throughout October of 2021 that we are observing, this makes us be very optimistic with the sales scenario for the future. Is that okay?
Thank you, Armando.
The next question is from Elvis Credendio from BTG Pactual.
Thank you, Peres, Armando. I have two questions. The first about events. You showed in the release that in the third quarter, the number of events was 45% of the total events that were done in the third quarter of 2019.
I wanted to understand what is your expectation in regards to the evolution of these events now in the fourth quarter. Can we recover to a better number? What would be the best effects? In the context of these events, what is the impact in your portfolio? The second question is regarding the growth and projects. I wanted to understand how you are thinking internally on your projects. The company never stopped to do these events. Now with the scenario of the recovery of sales, maybe there is a change in growth. Now you have different projects and you are discussing them in a very intense way. Or because of the macro scenario, maybe the economic, we are still taking into consideration the recovery of the economy. Can you tell us a little bit more about that?
Sure. Thank you for the question. First of all, the management model that we have adopted at the company a long time ago is very proactive for the shopping mall. We are looking at having gourmet events, cultural events, many different exhibits. We are looking to have different projects at the mall. Something that we have been doing all this time. This allows us to bring people. As a consequence, they are at the mall and they spend more time. The pandemic, of course, had an impact on that. It stopped us from having the same projects as we were used to, and that is why we brought this indicator now, showing that we have had a few specific events, some activities, some initiatives at the shopping mall. We believe that is going to be a leverage for sales, that is going to promote more initiatives at our malls.
We are doing that also through the app, the Multi app, that allows people to, for instance, register their invoices and everything so they can get some prizes, et cetera. The company has not stopped. That is actually very admirable. We did have a reduction in speed, but we were always willing to have new projects, new exhibitions, et cetera. At ParkJacarepaguá, for instance, we are having this opening. We have already talked about this opening, this mall, and we are extremely proud. We are going to test that out, and we are very happy to do so because it was a very complicated year last year. Now we are looking at the 20th shopping mall with the area that is pretty much all rented. As Peres usually says, it is our best initiative. I think our best project so far. I have to say, this makes us very hopeful.
We know that it's been crazy these past few weeks with the opening, but we're very happy, very hopeful, very optimistic. The same thing with Curitiba. We have an enterprise there project that has a very good occupancy rate. It is growing. People want new operations, new services. We are requalifying the mall even further. It is going to be even better with this expansion. We're going to have new operations, new services, leisure. We're going to have a great leasable area being used there.
Armando, by the way, the medical center is 100% leased, and for the stores, at least 30%. We're already doing the rest of the area. We're already under construction. We're also doing the expansion of BH Mall. We're looking, again, at new operations, requalifying this mall in Belo Horizonte. It's going to be even better.
We're working on multiple expansions, multiple projects, and if you look at the entire potential, if you look at the reports that we had in the previous quarters, some of them actually show that potential for expansion. It is truly interesting.
It is true, Armando. I just wanted to say that for a few years now, we've been also looking at the expansion of Morumbi Shopping in São Paulo. We're now looking at the final approvals, so that's going to start next year probably.
Excellent. It is true. This shopping mall is located in a very well-developed area in São Paulo. It is one of the main growth layers, I would say, that we have in São Paulo, and we're able to expand it and improve its capacity. It's very good in terms of mix, in terms of services, entertainment, et cetera. Excellent.
Peres, you wanted to say something?
Yes. I just wanted to say that in my experience, I've been working on this for over 50 years now. I was never an employee per se, so I had to create a job for myself. What I'm trying to say is, in my life experience, that's what I've noticed. Brazil is like this. If you're concerned about the crisis, you're never going to do anything. Because every five years, approximately, we have to overcome a crisis. It's ups and downs, I would say, with a higher frequency than in other countries. We have to get used to that. Brazil is basically a school for great professionals. What I'm saying is, I have my own private project in Miami with a great project, and it was 100% sold. Of course, I don't live there.
I live in Rio de Janeiro in Brazil. I love Brazil, I fight for Brazil. What I'm saying is, it is very nice that every intervention that we had abroad worked. Multiplan. Even in Portugal, when we were looking at the CascaiShopping, for instance, which is a pioneering project, it's no longer on our list because at a certain point we needed to sell that. We had a debt at the time that would grow 100x or 200 x a year. We had to face different crises, but the company knows how to take advantage of that and continue to develop. Maybe there is a reduction in speed, but this company never stops, and it will continue to do so for the next years.
Excellent, Peres. I wanted to mention one more thing that is important. The beginning of the company.
The budget of Golden Lake, now for October. It brings back an interesting real estate activity to the company, because last time we did that was back in 2011, if I am not wrong, which was Taubaté e Porto Alegre. Which was commercial and residential at the same time, and they are integrated to BarraShopping Sul. I have to confirm the date, but we are now launching a new project that Peres has mentioned already. A new lifestyle, basically, in Porto Alegre in the south of Brazil. We are looking at new types of properties, expansion of shopping malls. We are also looking at real estate. That is very nice. I have to say, this is the main real estate project ever done by our company, probably in Brazil. Anyway, it is a project that is not going to happen overnight.
It is going to be launched gradually because we know that we have to be careful about that. We are expanding. We are daring, it is true, because if you are not daring to try something, you will not be able to do much. This is what we are doing.
Excellent. Peres, Armando, thank you so much for the answers.
Thank you for the question. We have a question from Pedro Hajnal from Credit Suisse.
Hello, everyone. Good morning. Thank you for the presentation. I have two questions about the average ticket here, or the average revenue, basically. We know that there was a change in the behavior of consumers because they see the malls in a more objective manner now. I wanted to know, do you think that that average is going to be reduced? The average ticket sales, is it going to increase or to be reduced?
What do you say? Also, this flow is 15%-20% below. As we have people spending more time at the mall, do you think that is going to change again? Also, I wanted to ask you about the lease. Looking at this perspective that we have now, do you think you could maybe tell us more about the inflation and the backlog? Because last year that was discounted. During the entire period of time, I wanted to know a little bit more about that, the inflation and the backlog.
Well, Pedro, I was taking notes here, and I did not hear the second question.
Oh, sorry. The second question has to do with inflation. If you could maybe comment on that. There were a few discounts due to the inflation and the backlog. How much of that is going to also reflect on the rent?
Is that going to have an impact?
Let me talk about the inflation, and then I will talk about the first question. If you look at the report on page 33, you see we talk about the lease for the stores, and there is this table where we have the IGPM. Do you see that? Because investors wanted us to compare that to 2019 and 2020, so we have a rent, actually an IGPM that is accumulated in all those months. We also have the effect of IGPM, which is the ratio with the leasable area. If you look at the inflation for 12 months, and then you divide that by what we call the ABL, the leasable area. You have that indicator.
If you look at that table, you're going to see that the indicator for stores is actually below inflation, below the adjustment effect of the IGPM. That shows that we are also working with that discount policy. That's the perspective of the company, trying to help tenants face this very challenging time. As we have said before, and the figures show that clearly, what we know is that for this recovery time, we have reduced some of the discounts, which were specific for the pandemic, and now little by little that's removed. Now we also have the indicator of IGPM. Actually, I wanted to talk about IGPM as well, which is a figure that was released today. It is 0.64. That's interesting. As for the average sales, the average ticket, I'm not sure how you're calculating that average revenue.
Anyway, it would also go up due to the growth in sales and also because, as you said, people are spending more time at the mall. Now we see basically people spending more than one hour, which goes back to what we had back in the day, and I think that is going to also help those numbers go up. People are spending more time. They go to the theater, they go to the movies, they go to an art exhibition or something. They go have dinner. They go to a medical appointment. So the stay is much longer, and they're using the mall as a hub for all of their daily needs. Well, yes, during the pandemic, it's true that people would only go to the mall with a certain mission, in a way.
They would only go to buy something very quickly whenever they needed something, and that's it. Now, the flow was, let me see, 64, if I'm not wrong, in 2019, and the sales were 78. Now it is 80%, the flow, and sales are 100%. Obviously we know that the flow went up more than sales. But for sure, we have a lot more to recover because the flow is not 100% still or the events. So the state is getting better, and I think everything else is going to get much better. So yes, the average spend is going to be a little bit different. It is going to be better in the future, and the stay is also going to increase. As we saw in October, it is 100%.
Excellent. Thank you so much.
Now we have a question from Pedro Lobato from Bradesco BBI.
Hello, Peres, Armando, everyone. Thank you for the presentation. What we wanted to understand, what you're thinking for the next phases of Golden Lake. Is that going to depend on the sales in the first phase? Is that actually a matter of time until you continue with the rest of the project? Thank you.
This is José Isaac Peres. I think we started really well. It is a huge project. It is a neighborhood in a way. So we have to be careful about that. But the first one is really high class, I would say luxury. So we're looking at expensive places, BRL 3 million -BRL 5 million, approximately. The apartments are large. So in this type of project, we always start with the best. But the great demand, as we all know, is medium-sized apartments, 150 - 180, maybe 200, 220 sq m.
That is a huge demand, and we are probably going to anticipate the next phase because of that. We are probably going to anticipate that second wave. But of course, everything else continues. Now we are starting to build a lake, which actually is going to be a private beach for them. Even before we finish everything, we are building that lake because it brings more life to the project. At Golden Lake, that worked, and that is the strategy that we are going to adopt in Porto Alegre. We are very satisfied. No criticism at all. We have received many compliments for this. But of course, the next two waves are going to be faster.
Excellent. Thank you.
We have a question from Andre Mazini from Citibank.
Hello. Good morning. I have a question about the Golden Lake as well. I saw that the sales are around 34%. That is very good.
That is even better than the sales for the local competitor to which we have access. I wanted to know in terms of margin, what you see for this project. Are you looking at what kind of gross margin, 30%, 40%? What are we going to have? Dr. Peres was talking about that as well. What kind of expectations do you have? The second question has to do with IPCA and IGP-M.
As Armando was saying, there is a difference in these 24 months, IGP-M, 46% and the other is 13%. We know that in the long run they might be similar, but in the short run, there is this change probably also because of the currency. I think that difference also explains the occupancy for the third quarter. We see that, as was said before, we also noticed that.
If it had been similar, IPCA, IGP-M, maybe one would be lower, would be closer to the references. Since in the long run they should be similar, they should be back to normal in the future, right? Thank you.
Andre, I am going to answer very quickly on the real estate issue and well, here. I am in São Paulo and our guys are there in Rio de Janeiro. I am here and I am looking at them at the screen. The connection was not working there, but Oh, no, we came back. We are already connected again. The first question, in a very objective way, our margins are good. I can tell you that. I can assure you that. But I can make it very explicit, something that is starting with an inflation that is, well, the inflation is growing and it is very strong. What we see today is the following, that these projects, they are extremely promising, and they have a valuation above the BRL. 20, 30 years ago, an apartment that was bought at $500,000, today is worth $2 million, $2.5 million.
I'm not even talking about the rent of the people that bought, because otherwise the return on investment would be higher. These are projects that it's very difficult for them to not be profitable in many cities in the world. It took 11 years to approve this project. We built BarraShopping Sul, and we did real estate developments in the area. Now evidently, there is a great demand for investments in real estate, especially when the interest rate is high, and people always look for real estate for refuge. But real estate, depending on the people, it depends on the person and the understanding if they're going to do a great business or not. Well, today we have a good price below the thresholds in the noble areas of town, and we will quickly launch the second stage.
We were not expecting this very quick launch, but we always have 10, 12 year projections. We can see that one project is very close to the other. Well, maybe our price is composed, you have to see. People want to pay short-term sometimes without readjustments. We have IGP and IPCA rates. IPCA during the construction and, sorry, INCC, the National Index for Construction, and then after the work is done. The investments during the construction is low, and we know that. Small investments that they're going to do during construction, when it's ready, will be worth much more. For those that are going to resell, are going to earn money. As we say in Miami, we're delivering a building there, and initially, our market was very bad, and we started to. Now we are delivering 100% sold. With valuation, it's being valued over two years.
I believe that the strategy, I am somebody that comes from real estate. I did my professional life with hundreds of real estate projects, and we are talking about Multiplan. I've been an entrepreneur for 57 years. We come back to our origins, and we should not forget that the objective of the company is constant revenue that is ever-growing. I don't know if I answered your question
Hello, Andre, this is Armando. I apologize. We had a connection issue, but we are back. I was just. Maybe I got the question of IPCA and the other rates. Is it related to building or the condominium of the shopping malls? It's more for the occupancy costs and the spread of the rates, the taxes. Would it be better if they're close to one another, which is what we see in the long term, basically. Okay.
Certainly, if they were closer, then the spread would be different. That's what I imagine, but that's not the reality. We already commented. The curves are paired, were paired up, and for a period that there was IPCA was positive, IGPM was negative. These are cycles of the economy. We have no control over it. What we do have is to try and build the shopping mall in the best way possible to improve the sales of tenants, of stores, of retail, and servicing the clients and consumers in the best way possible for the shopping mall. We see that there are some indicators that show that, for example, IPCA over the last month is. Well, I'm using IGPM only as a base for published data. Our expectation actually is that this will be aligned. Obviously, we have the prediction.
We have also to take into consideration the inflation, and we cannot predict for real for what is going to be the impact on retail. Thank you.
The next question is from Beatriz Abreu from Goldman Sachs.
Hello, good morning, everyone. Thank you for accepting my question. My question in regards to revenue. Revenue for lease. We see that you had a lease revenue that was very positive above the threshold of the third quarter of 2019, so pre-pandemic. So I wanted to know in regards to the revenue of services and your expectation for others, the numbers in the third quarter should be lower. So I wanted to know from you, what do you expect that the number of revenue of services, will it grow and surpass the historical levels?
Hello, Beatriz. Thank you for your question. I cannot answer this as I would like.
We are dealing with situations month by month, day to day. The fact that the revenue income will be lower is due to other factors. We promoted condominium discounts and rent that are very specific and that impacts our services revenue. Also, if you take into consideration at the end of 2018, beginning of 2019, we announced several M&As. So that reduces our services revenue that we get from the administration of the enterprises. Well, just one second. Rio de Janeiro is coming back.
Okay. Ladies and gentlemen, please wait for the reconnection of the speaker in Rio de Janeiro. Thank you. Ladies and gentlemen, once again, please wait for the reconnection of the speaker in Rio de Janeiro. Beatriz, can you hear me?
Hello, I can hear you.
Beatriz. Okay, now we came back. We are having a lot of difficulties with the connection, and we apologize.
Well, you talked about the revenue of services. The revenue of services, I already explained, the parking was seen in. Well, for the month of September, beginning of June, many discussions and several things, enterprises that were present, and we have to see that normalized all throughout the time. Indicators that show, going back to the numbers in 2019, people that the time that they remained in the shopping mall, we see a great increase in the movement of the shopping malls. But one thing that we cannot forget is that more and more you see the public transportation being important. You have the Uber effect as well to arrive to the mall, and also cities becoming ever more populous, even in São Paulo or other capitals where we have the headquarter, for example, in São Paulo of Multiplan.
We see that there's a growth around the city, in and outside the city. So you can have all throughout this time the recovery of parking lots, but there is a decrease in the number of vehicles. That's the trend. I hope that I answered the questions, and I apologize for the problems in the connection.
Thank you.
Next question is from Fanny Oreng from Santander Bank.
Hello everyone, Armando, Dr. Peres. There are a few questions actually that is very interesting to mention that we have a very strong recovery in services when we look at the IBGE numbers. When we are talking about sales, even though we are reaching thresholds that are similar to 2019, we haven't seen that regrowth in services in the third quarter.
Can you give us a little bit of your opinion, what we have seen all throughout the fourth quarter and maybe some places are easing up restrictions? That is the first question. The second question, second point is can you tell us a little bit more about Vila Olímpia? How is the work in the region? I mean, the offices are starting to come back to life in the region of Vila Olímpia. How is the interest for people that have actually left the property? What is the expectation for the tenants for that shopping mall specifically?
Fanny, I will answer this. You talk about services. Services are important, but they are not the main one. The main thing is sales. From sales, everything is derived and then services. Now, sales, when it comes stronger, then the services are better yet.
But the stronger sales are not fully because sometimes, many times, they have that trauma of going to closed spaces, and that trauma is not going to be eased up overnight. But people are coming back from that being locked up at home with the vaccines. The auto isolation is something that is very bad. Now that is why we are providing the psychiatry services also inside of the shopping mall, besides the medical centers as well. But it is evident that the world changes, and they create new opportunities because of an unmet need. It is very difficult to have it serviced. Now, in regards to the You talk about Vila Olímpia. Vila Olímpia suffered a lot because São Paulo was completely emptied the offices. It is in a center there of services. People are coming back, yes. They are coming back for a simple reason.
It is very difficult, for example, in certain companies for you to manage a company, everybody at home, being at home. There is a psychological factor, which is boredom. People start getting anxious, they get fat, they are depressed because our life, we do not live in a digital world. We live in the real world, in the world of things. It is an illusion to think that the digital solution will make the gregarious feelings of homo sapiens that we have had for millions of years. I mean, anthropologists speak of this. Our pleasure of going to the mall is, well, when we see the mall full. Everybody likes to be in the mix. It is just like carnival. I mean, if there are 6 people in a party, it is not a party. You need a lot of people.
We have a behavior as beings that we have a herd effect. That is women and men, and myself included. Humanity, we do not eat in the digital, we do not make love digital. There are many things that we need on-site, and everybody wants to go back to their real life. I do not know if I answered your questions.
I think it is clear, Dr. Peres. But I was specifically talking about the restaurants. How do you see the restaurants in the fourth quarter? Is there an increase in the demands for this type of service?
They are an important part of the revenue of the shopping malls. Well, let me complete the answer. In terms of services, we have a lot of difference in cinema. You have to remember that the theaters, they had a big restriction in the main cities up until a short while ago.
And if you look at the services in regards to 2019, they still drop 26%. There is a great cinema highlight, for example, movies, and you get leisure in the parks inside of the shopping malls, they have a tremendous growth, showing that the ease up of restrictions is allowing for a better growth. Now the pet shops, the pet stores that have a great expressive growth when we compare it to 2019. Another indicator, florist, for example, flower shops. We can see more decoration revenue. These are things that have changed and positive highlights that we observe in comparison to 2019, but that are still very highly impacted. I'm sorry, didn't insist specifically with the issue. We have theaters and movies that are still greatly affected.
If you look at in comparison to 2020, we have 67% growth in that sense, and all of those activities from the services segment will continue to strongly grow. This is an issue for discussions. With time, we hope that we will bridge that gap along, once again, with 2019.
Thank you very much.
Next question is Jonathan Koutras from JP Morgan.
Hello, Dr. Peres. Two questions. The turnaround and the whole idea that we have been discussing, there is a change in the mix, looking at the positive trends and also the consumer behavior. We've mentioned that there are percentages that are positive and, we see that the behavior, there is a return of the movies and people are consuming more leisure. We also have holidays, sales for the holidays. What can you tell us about that?
Jonathan, can you repeat the first question?
We did not understand you.
Sure. Here, the mix of the retailers, there is a growth in the semester, right?
Jonathan, thank you. We have a slide in the presentation, page 12 is traditional, where we try to show that change in the new consumer habits. These changes, they're not overnight. The contracts are long-term. We see that this changes all throughout the years. We added a few points to this analysis showing the evolution of the shopping mall, which was a place that you went because you needed to buy a few things, and now there is an evolution of consumer habits, adding convenience, the experience, the exclusivity I would like to buy or take part or live in this scenario. Also one point that Dr. Peres always talks about in these calls, about human beings, about conviviality. I mean people talking.
There wasn't a change, but there was a trend. The reason if you take the project of ParkJacarepaguá, this is a project that was conceived before the pandemic, and it wasn't changed even with the pandemic. It is a modern project because it includes the trends for consumer habits that we've seen all throughout time.
The second question. If you can answer the second part. As I've told you, there is difficulty with the connection with the line.
Sure. For the consumer behaviors, we've seen that there are percentage that are increasing. We've seen that there is a lot of new movies, for example, 007.
Do you think what is really influencing in leisure?
Perfect. Your question is excellent, and there is a set of factors.
First, I would like to say, once again, we had the success of the vaccination campaign. We have the population vax that already took the first dose or second dose with the complete cycle. Secondly, the end of restrictions or as we've seen the occupancy recently, we have new movies, new products. We imagine that the stores are open and they don't have merchandise to sell, so the sales would be zero. We need to have new movies, new attractions, and that's important for movie theaters and for services and for leisure. Now, it's the sum of all parts. People come back, and they have new products available to buy, to experiment, and to experience, which is the case of movie theaters that had some recent launches, as you've mentioned.
Thank you, Armando.
Ladies and gentlemen, thank you for all the questions.
We close the Q&A session, and now we invite the participants that still have questions to get in contact with the investor relations department. Now, I would like to give the floor to José Isaac Peres for the final considerations. Please, the floor is yours.
Today, it seems that we have very serious connection issues with Rio de Janeiro and São Paulo as well. What we wanted to actually, first of all, we would like to thank you all for your attention and your dedication and your trust that you have with Multiplan. We remain at your service through our investor relations area, should you have any questions. Since this is the last call of the year, the next call will be done in 2022. I bid you all a great end-of-the-year celebrations with a lot of health, peace, and success.
Once again, thank you very much for your attention and trust.
Thank you. Dr. Peres will talk.
I would like to bid everybody farewell from this year, and by saying the following. You saw in this presentation the effort of hundreds of our employees, the collective effort of society and the country to return to normalcy. I am certain that commerce will come back in full. I believe that 20% of the stores went bankrupt, but the ones that are coming back are coming back very strongly. We will have a lot of efficiencies in retail. Even though this is a political year, we never really cared about the crisis, and we will continue with our trajectory. Thank you very much to you all for having the patience to hear us for so long. Thank you very much.
Thank you.
The earnings call for the third quarter of 2021 in Multiplan is closed. We thank you all for your participation, and have a wonderful day. Thank you.