aliansce reports 2010 and 4q10 results...

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Aliansce Reports 2010 and 4Q10 Results and Financial and Operating Highlights Rio de Janeiro, March 21, 2011 – Aliansce Shopping Centers S.A. (Bovespa: ALSC3), one of the largest shopping mall owners and administrators in Brazil, announces today its results for the fourth quarter and full year of 2010. Unless stated otherwise, all operating and financial information herein is expressed in Brazilian reais and based on consolidated figures, pursuant to Brazilian Corporate Law and international financial reporting standards (IFRS), in accordance with the pronouncements of the Accounting Pronouncements Committee (CPC), approved by the Brazilian Securities and Exchange Commission (CVM). The Company has republished its 2009 results in accordance with IFRS, allowing comparisons between 2009 and 2010, as determined by CPC 37 – Initial adoption to IFRS 1. The Company’s managerial information, which is based on its consolidated financial statements, was prepared to reflect and consolidate the 69.62% interest held by Aliansce in Via Parque Shopping and the exclusion of Shopping Leblon from our portfolio in November 2009. For an analysis of the reconciliation of the consolidated financial statements and managerial information, please see the comments in the Appendices section.

4Q10 highlights and recent events The financial information highlighted below is managerial and based on the Company’s consolidated financial statements:

Sales in the Company's shopping malls grew by 27.5% in 4Q10, while same-area sales (SAS) and same-store sales (SSS) increased by 15.7% and 14.9%, respectively.

Net income totaled R$70.5 million in 2010, 24.9% up on 2009, and R$17.3 million in 4Q10, down by 38.6% wneh compared to the 4Q09. It is worth mentioning that the 4Q09 result was influenced by a non-recurring capital gain of R$26 million from the sale of 16% of FIIVPS.

Gross revenue in 2010 increased by 30.1% to R$223.5 million, while 4Q10 gross revenue climbed by 28.5% to R$67.1 million.

Net operating income (NOI) grew by 29.9% and 21.8%, respectively, in 2010 and 4Q10, given that revenue growth outpaced the upturn in operating costs.

Adjusted EBITDA moved up by 30.6% to R$138.3 million in 2010, accompanied by an adjusted EBITDA margin of 66.9%. In 4Q10, adjusted EBITDA increased by 30.5% over 4Q09, with a margin of 67.8%.

Adjusted funds from operations (AFFO) grew by 73.3% to R$124.7 million in 2010, with an adjusted FFO margin of 60.3%. In 4Q10, AFFO increased 67.2% to R$32.4 million, with a margin of 52.6%.

The malls occupancy rate stood at 97.9%, excluding only Boulevard Shopping Belo Horizonte, which was inaugurated on October 26, 2010.

In 4Q10, the Company invested R$207.6 million in greenfield projects, increased interests and mall expansions, as

well as land acquisitions. In 2010, investments totaled R$372.2 million.

On November 5, 2010, Aliansce acquired an 18,255 sqm site through an auction, adjacent to Via Parque Shopping in Barra da Tijuca, Rio de Janeiro. The area represents a unique opportunity for developing a project connected to the shopping mall. For more details, see the Growth Drivers section.

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On November 11, 2010, the company acquired 30% of the construction rights for a corporate tower to be built on top

of Boulevard Shopping Belo Horizonte, in Belo Horizonte, Minas Gerais. Aliansce now holds a 100% interest in the tower and continues with 70% in the mall. For more details, see the Growth Drivers section.

On November 19, 2010, the minority shareholders approved the acquisition of 50% of Boulevard Shopping Campos at an Extraordinary Shareholders’ Meeting. The mall, with 19,000 sqm of GLA, is under construction and is scheduled to open in April 26, 2011. For more details, see the Growth Drivers section.

On November 22, 2010, the Company acquired an additional 6.0% interest in Boulevard Shopping Campina Grande

and now owns 36.52% of the mall.

On December 3, 2010, the Company opened the second expansion of Bangu Shopping, in Rio de Janeiro, adding 5,611 sqm of GLA, 25 new stores and a new food court to the mall, increasing the mall’s total GLA to 51,929 sqm.

On February 03, 2011, the Company announced an agreement with RJZ Cyrela for the construction of two commercial towers, with 720 units, on top of Carioca Shopping, in Rio de Janeiro. On the same day, the Company also announced that the expansion’s total GLA increased from 8,200 sqm to 10,700 sqm, with inauguration scheduled for 4Q12. The total amount to be bartered for the real estate project represents approximately 70% of the expansion capex. The projected NOI, considering 100% stake, for the third year of the expansion is of R$6.7 million, resulting in a real and unleveraged IRR of 58.0% p.a..

On February 8, 2011, Aliansce held an event to celebrate the handing over of the keys to the tenants of Boulevard

Shopping Campos, which has already 95% of its GLA leased.

Main indicators 4Q10 4Q094Q10/4Q09

Δ%2010 2009

2010/2009

Δ%

Financial Performance - Managerial Information

Gross revenue 67,104 52,236 28.5% 223,469 171,721 30.1%

Net revenue 61,717 48,767 26.6% 206,762 159,934 29.3%

NOI 48,125 39,527 21.8% 167,074 128,636 29.9%

Margin % 83.7% 86.2% -2.4p.p. 88.1% 87.6% 0.5p.p.

Adjusted EBITDA 41,860 32,088 30.5% 138,335 105,932 30.6%

Margin % 67.8% 65.8% 2 p.p. 66.9% 66.2% 0.7 p.p.

Net Income 17,317 28,190 -38.6% 70,520 56,446 24.9%

Margin % 28.1% 57.8% -29.7p.p. 34.1% 35.3% -1.2p.p.

Adjusted FFO 32,443 19,398 67.2% 124,700 71,976 73.3%

Margin % 52.6% 39.8% 12.8p.p. 60.3% 45.0% 15.3p.p.

Operational Performance - Managerial Information

Sales 1,382,590 1,083,998 27.5% 4,103,614 3,241,893 26.6%

Sales/sqm (montlhy average) 1,131.3 1,040.6 8.7% 914.2 821.5 11.3%

Total rent / sqm (monthly average) 60.9 59.9 1.7% 56.8 53.7 5.7%

SAS/sqm (sales on same area)¹ 1,266.4 1,094.8 15.7% 949.7 831.3 14.2%

SAR/sqm (rents on same area)¹ 69.5 62.1 11.8% 54.1 49.9 8.4%

SSS/sqm (same store sales)¹ 1,184.7 1,031.0 14.9% 927.7 813.3 14.1%

SSR/sqm ( same store rent)¹ 68.2 60.8 12.1% 53.7 49.6 8.2%

Occupancy costs (% of sales) 9.2% 9.3% -0.1p.p. 9.9% 10.3% -0.3p.p.

Late Payments 0.7% 1.0% -0.3p.p. 1.5% 1.6% -0.1p.p.

Occupancy² 97.9% 98.1% -0.2p.p. 97.9% 98.1% -0.2p.p.

Total GLA (sq.m.) 474,538 423,639 12.0% 474,538 423,639 12.0%

Owned GLA (sq.m.) 263,706 225,718 16.8% 263,706 225,718 16.8%

GLA reported sales (average - sqm) 391,604 347,243 12.8% 369,180 328,875 12.3%

¹ Monthly average. Does not include Shopping Santa Úrsula (under redevelopment process)

² Does not include Boulevard Shopping Belo Horizonte

Note: Includes the consolidation of the 69.62% of the investment in Via Parque Shopping and excludes 70% of Shopping Leblon’s 4Q09 result.

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Effects of the Initial Adoption of IFRS

In accordance with the convergence of accounting practices adopted in Brazil with international financial reporting standards

(IFRS) as of 2010, the Company presents below the main effects on its consolidated financial statements:

I. Calculation of depreciation with the new useful life – ICPC 10

The Company opted to reappraise the useful life of its assets based on independent experts report, altering their useful life

from 25 to between 40 and 48 years. As a result, Aliansce’s property plant and equipment was adjusted by R$ 11,627 thousand

in 2010.

The adoption of ICPC 10 was carried out prospectively and the adjustments were recognized as of January 1, 2010.

II. Capitalization of interest – CPC 20

Capitalization of interest on the Company’s loans, whose proceeds were used on new developments and expansions. Interest

previously recognized under financial expenses was reclassified under property for investments in the amount of R$12,560

thousand in 2010 and R$10,154 thousand in 2009.

III. Business combinations – CPC 15

For all acquisition occurred as of January 1, 2009 the Company measured the fair value of its assets and liabilities acquired

(including the acquisition of joint and/or shared control of assets) and evaluated the existence of intangible value.

For more details of the impacts of the IFRS please see our 2010 Financial Statements, note 3.

IV. Property to Investment – CPC 28

The Company registers all its shopping malls in operation or under development as property for investment, once these

properties are for leasing.

The Company decided in registering its properties for investments by costs method. The fair value was calculated based on

proprietary premises and following the DCF method with discount rate calculated by the CAPM model. The fair value on

December 2010, was of R$ 3.0 billion.

For more details please see our 2010 Financial Statements, note 14.

V. Reversal of net deferred charges and elimination of amortization of deferred charges - CPC 37

In accordance with the instructions for the initial adoption of the IFRS the Company eliminated deferred charges and the

amortization of deferred charges from the income statement.

For more details of the impacts of the IFRS please see our 2010 Financial Statements, note 37.

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Message from Management

Aliansce continued its strong growth in 2010, as the Brazilian economy had the highest GDP growth in the last 25 years.

Aliansce’s portfolio of 17 malls (including 3 under development) is strategically located throughout Brazil, with exposure to a

broad base of consumers and irreplaceable, with strong cash flows. The commitment of our management teams allowed the

Company to strengthen our operations and to capitalize on retail real estate opportunities throughout Brazil.

Aliansce’s portfolio had total sales growth of 26.6% in 2010. As a result of our growth the 2010 EBITDA and FFO were of

R$138.3 million and R$124.7 million and our margins improved to reach 66.9% and 60.3%, respectively.

In the 4Q10, the SSS and SSR for the portfolio were of 14.9% and 12.1%, respectively. In 2010, the SSS and SSR for the

portfolio were of 14.1% and 8.2%, respectively. The combination of strong sales growth and low occupancy cost of 9.9% for

the portfolio, gives us the possibility to increase our rents, while preserving a healthy ratio of occupancy cost to our retailers.

In the 4Q10, Aliansce’s New Generation of assets (less than five years of operations), which represent approximately 56% of

the Company’s GLA, posted SSS of 21.2%. The malls with exposure to the emerging middle class had SSS growth of 21.0% in

the same period. This group of assets represents approximately 35% of our GLA. These growth rates are well above the sector

average and validate capabilities of our development and management teams. As a result of increased sales and tenant

productivity, several of our properties have experienced leasing spreads that approximate 30.0% in 2010.

In January 2010, Aliansce had an “IPO-debut”, where the Company raised R$ 450 million of new capital. The infusion of new

capital strengthened our balance sheet and increased our investment capacity. We are committed to maintaining a strong

balance sheet and to use leverage in a conservative and accretive manner.

During 2010, Aliansce committed R$ 372 million in investments ranging from the acquisitions of additional stakes in our malls

to the funding of new projects and expansions. The Boulevard Shopping Campos Project was acquired through a process

whereby minority shareholders voted to approve the related party transaction. This process confirms our commitment to the

highest governance standards. The Campos property with opening scheduled for April 26, 2011 is over 95% leased.

The opening of Boulevard Belo Horizonte in October 2010 marks our entry into Brazil’s third largest city. Boulevard Belo

Horizonte is the second largest mall in the City and added 30.2 thousand sqm to Aliansce’s owned GLA. We are developing

one of the principal triple A office buildings in Belo Horizonte at the site, with scheduled opening in 4Q12.

In August 2010, we began the leasing of Parque Shopping Belém, which will be our second property in the city. The first

property, Boulevard Shopping Belém, opened in November 2009 and is over 99% leased. These will have been the only two

malls that have been developed in Belém, a city with over two million people in its greater metropolitan area in over 15 years.

The expansions of Bangu, Carioca and of our Salvador property added 9.5 thousand sqm to our GLA in 2010. The cumulative

investment in these expansions was of R$ 29.1 million and the stabilized expected NOI is of R$ 5.6 million.

The acquisition of a site adjacent to Via Parque Shopping in November 2010, will allow us to vigorously expand our property.

We are working on the details of the project that should add approximately 20 thousand sqm of owned GLA for Aliansce in the

first semester of 2013.

We will continue to seek investment alternatives that are in keeping with our investment philosophy of creating value for our

shareholders and that enhance the quality of our portfolio. We expect acquisition opportunities that will allow us to increase

our portfolio in 2011. We will continue to seek development opportunities in markets where there is an inherent

disequilibrium between the supply and demand of GLA. We are committed to making our malls the most relevant in their

markets. In conclusion, we remain confident about the prospects of Aliansce’s growth opportunities in 2011 and beyond.

Management

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Our Portfolio Aliansce holds interests in and/or manages malls that are located in all regions of Brazil and are exposed to a wide range of income groups. To facilitate the understanding of the Company’s growth in the coming years, we divided the portfolio into three groups in accordance with their time in operation or the current phase of each asset.

The Core asset group includes mature assets and that has more than five years of operating history.

New Generation assets are those still under maturation phase and that has less than five years of operating history or that have undergone recent renovation.

Next Generation assets are those still under development or redevelopment. Note that as of 4Q10, after the conclusion of its first renovation phase, Shopping Santa Úrsula was classified as a New Generation asset and Boulevard Shopping Campos is now classified as Next Generation asset following its acquisition by the Company.

At the end of 4Q10, Aliansce held interests in 14 operational malls and three malls under development, totaling 263,700 sqm of owned GLA in operation and 41,500 sqm of owned GLA under development. The Company also acts as a service provider, managing and leasing eight malls owned by third parties with a combined GLA of 116,100 sqm.

4Q104Q09

Core New Generation

NextGeneration

Owned GLA per group

43.8%56.2%

49.9%

42.3%

7.7%

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Sales Performance

Sales in the Company’s malls totaled R$1.4 billion in 4Q10, 27.5% up on 4Q09. In 2010, sales totaled R$4.1 billion, a 26.6% increase over 2009. In 2010, 13 of our 14 malls posted double-digit growth over the previous year. Caxias Shopping, Bangu Shopping and Shopping Grande Rio continued to record substantial sales in the final quarter, and closed the year with respective annual growth of 28.0%, 24.3%, and 24.0%. The excellent location of our assets, the buoyant retail market and the greater share of New Generation mall sales were reflected in 4Q10 same-store sales (SSS) and same-area sales (SAS) growth of 14.9% and 15.7%, respectively, confirming expectations of a strong sales surge. In 2010, SSS and SAS posted respective growth of 14.1% and 14.2%. New Generation assets confirmed our expectations and continue to outperform Core assets in terms of SSS and SAS growth. It is worth noting that the inclusion of Boulevard Shopping Belém in the calculation (the mall completed one year of operations in November 2010) had a positive impact on the 4Q10 indicators. Core assets SSS grew by 10.8% in the fourth quarter, while New Generation assets SSS increased by 21.2%. The performance of Shopping Santa Úrsula and Boulevard Shopping Brasília has also improved. The occupancy rate and number of visitors Shopping Santa Úrsula have increased significantly leading to sales growth of 43.6% in 4Q10 and 31.0% in 2010, due to the conclusion of the first redevelopment phase. In the case of Boulevard Shopping Brasília, the higher occupancy rate and the increased number of visitors were also the main reasons for its sales performance, which almost doubled in the fourth quarter – the mall’s sales per square meter climbed by 46.2% in 4Q10 and 137.9% in 2010.

Operating Malls State % Aliansce GLA (sqm)Owned GLA

(sqm)

Occupancy

rate

Services

rendered

Core Assets - more than 5 years of operating history 44.7% 243,981 108,972 98.9%Shopping Iguatemi Salvador¹ BA 45.36% 60,180 27,297 99.2% MLShopping Taboão SP 38.00% 35,601 13,528 99.6% MLVia Parque Shopping RJ 69.62% 53,937 37,551 99.3% MLBoulevard Shopping Campina Grande PB 36.52% 17,335 6,331 99.4% MLShopping Grande Rio RJ 25.00% 35,825 8,956 98.8% MLCarioca Shopping RJ 40.00% 23,461 9,384 99.6% MLSupershopping Osasco SP 33.58% 17,641 5,924 94.6% LNew Generation Assets - less than 5 years of operating history 67.0% 221,095 148,180 96,3%²Bangu Shopping RJ 100.00% 51,929 51,929 99.8% MLSantana Parque Shopping SP 50.00% 26,542 13,271 98.4% MLShopping Santa Úrsula SP 37.50% 23,088 8,658 89.8% -Caxias Shopping RJ 40.00% 25,559 10,223 98.2% MLBoulevard Shopping Brasília DF 50.00% 16,925 8,462 83.5% MLBoulevard Shopping Belém PA 75.00% 33,988 25,491 98.6% MLBoulevard Shopping Belo Horizonte MG 70.00% 43,064 30,145 87.7% MLC&A Stores 69.27% 9,462 6,555 100.0%C&A Store Feira de Santana BA 100.00% 2,108 2,108 100.0% n/aC&A Store Grande Rio RJ 100.00% 2,108 2,108 100.0% n/aC&A Store Iguatemi Salvador Naciguat BA 44.58% 5,246 2,339 100.0% n/aTotal portfolio 55.57% 474,538 263,706 97,9%²Next Generation Assets - assets under development / redevelopment 50.00% 82,968 41,484Boulevard Shopping Campos RJ 50.00% 19,000 9,500 - MLParque Shopping Belém PA 50.00% 28,100 14,050 - MLParque Shopping Maceió AL 50.00% 35,868 17,934 - MLTotal portfolio + assets under development 557,506 305,190

(M) Management | (L) Leasing¹Ownership interest detained from two condominiums - 41,59% of Naciguat and 71.49% of Riguat.

² Excluding Boulevard Shopping Belo Horizonte, launched in october 26th of 2010

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Financial Highlights Gross Revenue Fourth-quarter gross revenue increased by 28.5% over 4Q09, influenced by the growth on revenues of Boulevard Shopping Belém, the inauguration of Boulevard Shopping Belo Horizonte, the expansion of Bangu Shopping and the food court redevelopment and expansion of Iguatemi Salvador. In 2010, gross revenue moved up by 30.1% over the year before. Excluding the straight line rent adjustments our gross revenues showed an increase of 35.9% on the 4Q10 and 33.0% in 2010 when compared to the 4Q09 and 2009, respectively. Revenues from the New Generation of assets group (assets with less than five years of operating history) increased 73.8% when compared with the same period last year and its relative revenue share in total revenues increased from 31.7% in 2009 to 42.3% in 2010.

Sales per mall 4Q10 4Q094Q10/4Q09

Δ%2010 2009

2010/2009

Δ%

(Amounts in thousands of Reais)

Shopping Iguatemi Salvador 336,270 296,981 13.2% 1,096,632 987,013 11.1%

Shopping Taboão 103,532 88,312 17.2% 312,356 265,671 17.6%

Via Parque Shopping 118,753 106,944 11.0% 379,393 330,188 14.9%

Boulevard Shopping Campina Grande 55,617 50,825 9.4% 183,405 163,185 12.4%

Shopping Grande Rio 112,519 93,793 20.0% 338,035 272,590 24.0%

Carioca Shopping 87,481 75,406 16.0% 263,642 238,241 10.7%

Supershopping Osasco 55,884 54,181 3.1% 182,416 175,062 4.2%

Bangu Shopping 140,845 111,227 26.6% 399,083 321,154 24.3%

Santana Parque Shopping 67,100 60,334 11.2% 206,045 178,071 15.7%

Shopping Santa Úrsula 36,158 25,177 43.6% 109,792 83,822 31.0%

Caxias Shopping 66,279 52,555 26.1% 192,168 150,103 28.0%

Boulevard Shopping Brasília¹ 30,854 15,558 98.3% 85,776 24,086 256.1%

Boulevard Shopping Belém² 117,826 52,707 123.5% 301,397 52,707 471.8%

Boulevard Shopping Belo Horizonte³ 53,474 - n/a 53,474 - n/a117825733.1Total 1,382,590 1,083,998 27.5% 4,103,614 3,241,893 26.6%

GLA reported sales (average sqm) 391,604 347,243 12.8% 369,180 328,875 12.3%¹ Opened in June, 2009

² Opened in November, 2009

³ Opened on October 26, 2010

Key Money5.9%

Parking11.5%

Transfer Fee0.4%

Services rendered

11.1%

Minimum rent83.4%

Percentage rent9.1%

Stands / Kiosks7.4%

Rent71.2%

Revenues Breakdown- 2010

1,086.6

1,204.1

953.5

1,155.8

4Q09 4Q10 4Q09 4Q10

SSS (R$/m²)¹

10.8%

21.2%

Core Assets New Generation

¹ Monthly average

5.9%

10.9%

14.9% 15.7%

27.5%

IPCA Retail Sales SSS SAS Total Sales

Sales Growth 4Q10/4Q09

88

Managerial Financial Information 4Q10 4Q094Q10/4Q09

Δ%2010 2009

2010/2009

Δ%

Revenues per type

Rentals 53,167 40,027 32.8% 158,890 120,688 31.7%

Key Money 3,740 2,688 39.1% 13,079 9,707 34.7%

Parking 8,729 6,182 41.2% 25,643 18,234 40.6%

Transfer fee 506 137 269.3% 970 576 68.4%

Services rendered 6,825 4,667 46.2% 24,742 18,691 32.4%

Straight line rent adjustement - CPC 06 (5,863) (1,465) 300.2% 145 3,825 -96.2%

Total 67,104 52,236 28.5% 223,469 171,721 30.1%

(Amounts in thousands of Reais, except percentages)

Rent70.0%


Δ%2010 2009

2010/2009

Δ%

Revenues per mall

Shopping Iguatemi Salvador 12,938 11,508 12.4% 40,750 38,529 5.8%

Shopping Taboão 3,492 3,361 3.9% 11,553 11,335 1.9%


Boulevard Shopping Campina Grande 811 643 26.1% 2,525 2,186 15.5%




Bangu Shopping 11,229 9,514 18.0% 33,536 29,826 12.4%

Santana Parque Shopping 3,290 3,799 -13.4% 10,869 11,366 -4.4%

Shopping Santa Úrsula 1,047 357 193.3% 2,988 1,490 100.5%

Caxias Shopping 2,326 1,876 24.0% 7,350 6,146 19.6%

Boulevard Shopping Brasília¹ 1,407 546 n/a 3,592 1,061 n/a

Boulevard Shopping Belém² 10,160 4,499 n/a 31,779 4,499 n/a

Boulevard Shopping Belo Horizonte³ 4,396 - n/a 4,396 - n/a

C&A Stores 627 601 4.3% 2,452 2,339 4.8%

Services 6,825 4,667 46.2% 24,742 18,691 32.4%

Straight line rent adjustement - CPC 06 (5,863) (1,465) 300.2% 145 3,825 -96.2%

Total 67,104 52,236 28.5% 223,469 171,721 30.1%¹ Opened in June, 2009




Rent70.0%

Rental Revenues per mall 4Q10 4Q094Q10/4Q09

Δ%2010 2009

2010/2009

Δ%


Shopping Iguatemi Salvador 12,157 11,099 9.5% 38,578 36,733 5.0%

Shopping Taboão 2,640 2,252 17.2% 8,617 7,758 11.1%


Boulevard Shopping Campina Grande 793 626 26.7% 2,459 2,121 15.9%




Bangu Shopping 8,262 7,297 13.2% 24,486 21,477 14.0%

Santana Parque Shopping 2,545 2,304 10.5% 8,044 7,735 4.0%

Shopping Santa Úrsula 818 344 137.8% 2,358 1,409 67.4%

Caxias Shopping 1,596 1,408 13.4% 4,970 4,606 7.9%

Boulevard Shopping Brasília¹ 1,315 519 n/a 3,329 1,011 n/a

Boulevard Shopping Belém² 8,763 3,858 n/a 26,618 3,857 n/a

Boulevard Shopping Belo Horizonte³ 3,147 - n/a 3,147 - n/a

C&A Stores 627 603 4.0% 2,452 2,339 4.8%

Total 53,167 40,027 32.8% 158,890 120,688 31.7%¹ Opened in June, 2009



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The improved performance of our malls in the period and the openings in 2009 (Boulevard Shopping Brasília and Boulevard Shopping Belém) and 2010 (Boulevard Shopping Belo Horizonte) pushed up rent revenues. In 4Q10, total rent revenue from the Company’s malls increased by 32.8% over the same period in 2009, and by 31.7% in the full year. Iguatemi Salvador, Super shopping Osasco, Santana Parque Shopping and Caxias Shopping all posted substantial rent revenue growth in the fourth quarter, pointing to a positive performance trajectory.

Cost of Rentals and Services

Property depreciation expenses showed an increase due to the new malls inaugurations and expansions at the end of 2009

and throughout 2010. On the other hand this increase has been reduced by the adoption in 2010 of the CPC 28, which

extended their depreciation period of property from 25 to up to 48 years. As a result, depreciation expenses was adjusted by

R$ 11,627 thousand in 2010.

Pre-operating expenses in the fourth quarter are explained by the inauguration of Boulevard Shopping Belo Horizonte, the construction costs of Parque Shopping Belém and of Boulevard Shopping Campos, which is expected to open on April, 2011. The GLA increase in our assets contributed to an increase of mall’s operational costs and parking costs.

Gross Income Annual gross income increased by 34.8% over 2009 to R$141.4 million, while gross income in the fourth quarter totaled R$37.0 million, versus R$31.9 million in 4Q09, reflecting the operation of new malls.

Operating Income (Expenses)

In 2010, general and administrative expenses (G&A) showed an increase of

22.8% year-on-year, from R$26.5 million in 2009 to R$32.6 million due to

new demands and activities related to being a publicly-held company and

the implementation of the stock options plan.

Since the IPO, Aliansce has invested in improving its corporate governance

and controls. In the 4Q10, the Company has initiated the implementation of

SAP, which begins operating (1st

phase) in the 3Q11.


Δ%2010 2009

2010/2009

Δ%

Costs per type

Depreciation and amortization 7,906 5,897 34.1% 21,500 19,840 8.4%

Malls operational costs 7,915 5,404 46.5% 19,387 15,288 26.8%

Parking costs 2,805 1,695 65.5% 9,080 6,114 48.5%

Pre-operational expenses 3,103 1,460 112.5% 6,901 5,866 17.6%

Leasing and Planning costs 1,534 1,468 4.5% 5,305 4,904 8.2%

Allowance of doubtful accounts 1,434 943 52.1% 3,186 2,992 6.5%

Total 24,697 16,867 46.4% 65,359 55,004 18.8%


31,900 37,020

104,930

141,403

4Q09 4Q10 2009 2010

Gross Income(R$ Thousand)

16.0%

34.8%

(8,333) (7,899)

(26,535)

(32,586)

G&A Expenses (R$ Thousand)

4Q09 4Q10 2009 2010

1100

It is important to emphasize that in the 4Q09 the G&A expenses had non recurring expenses from arbitrage and consulting

regarding the sale of shares from the FIIVPS, which distorts the comparison.

Financial Result The improved cash position due to the proceeds from the IPO at the beginning of 2010 generated an increase in the Company’s financial income, in turn improving the financial result. In addition, the recognition of the SWAP at market value (Law 11,638) represented a gain of R$8.1 million, versus a loss of R$12.3 million in 2009. Another important contribution to the 2010 financial result came from the real estate credit notes (CCIs) and real estate receivables certificates (CRIs) issued by Boulevard Shopping Belém in 1Q09, which had no impact during the construction period, and by Bangu Shopping in 4Q09.

Net Income

Aliansce posted annual net income of R$70.5 million, 24.9% up on the R$56.4 million recorded in 2009, with a net margin of 34.1%, versus 35.3% the year before. In 4Q10, net income came to R$17.3 million, 38.6% down on the R$28.2 million reported in 4Q09, due to the 4Q09 and 2009 impact of the R$26.0 million non-recurring capital gain from the sale of a 16% interest in Via Parque Shopping.

The net income in both 4Q09 and 2009 were adjusted due to the adoption

of IFRS, chiefly due to (i) Capitalization of interest (CPC 20); (ii) Amortization

of appreciation of property and (iii) elimination of the amortization of

deferred charges from the income statement (CPC 37).

Net Operating Income (NOI)

The excellent performance of our malls in addition to the inauguration of Boulevard Shopping Belo Horizonte and the expansions, resulted in an increase of fourth-quarter NOI by 21.8% over 4Q09 to R$48.1 million, with a NOI margin of 83.7%. In 2010, the first full year of operations for Boulevard Shopping Belém, NOI increased by 29.9% from R$128.6 million, in 2009, to R$167.1 million, accompanied by a margin of 88.1%. Excluding the straight line rent adjustment the NOI margin would be of 86.0% on the 4Q10 over 86.6% on the 4Q09 and 88.4% in 2010 over 87.2% in 2009.


Δ%2010 2009

2010/2009

Δ%

Operating (Expenses)/Income

Administrative and General expenses (7,899) (8,333) -5.2% (32,586) (26,535) 22.8%

Equity in income - 69 n/a - 383 n/a

Deferred and Intangible Depreciation and Amortization Expenses (111) (137) -19.1% (368) (285) 29.1%

Other Operating (Expenses)/Income 6,084 26,982 -77.5% 6,296 31,015 -79.7% (+) Law suits - - n/a - 6,080 n/a (+) Gain on investments - CPC 15/ICPC09 4,460 - n/a 4,460 - n/a (+) Capital Gain on sale of FIIVPS shares - 26,010 n/a - 26,010 n/a (+/-) Others 1,624 972 67.1% 1,836 (1,075) -270.8%

Total Ajdusted (1,926) 18,581 -110.4% (26,658) 4,578 -682.3%


(10,747)

(14,734)

(32,246)

(19,817)

Financial Result (R$ Thousand)

4Q09 4Q10 2009 2010

11,023

17,317 39,279

70,520

17,167

17,167

4Q09 4Q10 2009 2010

Net Income (R$ Thousand)

28,190

56,446

Gain on Via Parque Shopping Sale of 16%

1111

EBITDA and Adjusted EBITDA Adjusted EBITDA totaled R$41.9 million in 4Q10, 30.5% up on 4Q09. In 2010, the most important contributor to the Adjusted EBITDA was net revenues, whose growth outpaced the increase in costs, leading to an adjusted EBITDA of R$138.3 million versus R$105.9 million in 2009. The adjustments of IFRS implemented in 2010 didn’t affect our Adjusted EBITDA.

FFO and Adjusted FFO (AFFO)

Adjusted funds from operations (AFFO) reflects the Company’s real cash flow, considering the structuring of long-term financing with grace periods for principal and interest, and excluding non-recurring and non-cash items. The AFFO margin came to 60.3% in 2010, 15.3 p.p. up from 2009. The only IFRS adjustment that impacted the FFO and AFFO was the capitalization of interest (CPC 20) which influenced the net income.


Δ%2010 2009

2010/2009

Δ%

NOI

Rents 47,810 38,699 23.5% 160,005 125,089 27.9%

Key Money 3,740 2,688 39.1% 13,079 9,707 34.7%

Parking Results 5,924 4,487 32.0% 16,563 12,120 36.7%

Operational Income 57,474 45,874 25.3% 189,647 146,916 29.1%

(-) Malls operational costs (7,915) (5,404) 46.5% (19,387) (15,288) 26.8%

(-) Allowance of doubtful accounts (1,434) (943) 52.1% (3,186) (2,992) 6.5%

(=) NOI 48,125 39,527 21.8% 167,074 128,636 29.9%

Margin NOI 83.7% 86.2% -2.4p.p. 88.1% 87.6% 0.5p.p.



Δ%2010 2009

2010/2009

Δ%

Net Revenues 61,717 48,767 26.6% 206,762 159,934 29.3%

(-) Costs (24,697) (16,867) 46.4% (65,359) (55,004) 18.8%

(-) Expenses (1,926) 18,581 -110.4% (26,658) 4,578 -682.3%

(+) Depreciation and amortization 8,017 6,034 32.9% 21,868 20,125 8.7%

(=) EBITDA 43,111 56,515 -23.7% 136,613 129,633 5.4%

(+)/ (-) Non-recurring (expenses)/income (1,251) (24,427) -94.9% 1,722 (23,701) -107.3%

(-) Capital Gain on sale of FIIVPS shares - (26,010) n/a - (26,010) n/a

(+) Pre-operational expenses 3,103 1,460 112.5% 6,901 5,866 17.6%

(-) Gain on investments - CPC 15/ICPC09 (4,460) - n/a (4,460) - n/a

(-) Law suits - - n/a - (6,080) n/a

(+/-) Others 106 123 -13.7% (719) 2,523 -128.5%825

(=) Adjusted EBITDA 41,860 32,088 30.5% 138,335 105,932 30.6%

Margin adjusted EBITDA 67.8% 65.8% 2 p.p. 66.9% 66.2% 0.7 p.p.



Δ%2010 2009

2010/2009

Δ%

FFO

Net Income 17,317 28,190 -38.6% 70,520 56,446 24.9%

(+) Depreciation and Amortization 8,017 6,034 32.9% 21,868 20,125 8.7%

(=) FFO 25,334 34,224 -26.0% 92,388 76,571 20.7%

(+)/ (-) Non current expenses/(income) (1,251) (24,427) -94.9% 1,722 (23,701) -107.3%

(+) SWAP 1,211 3,040 -60.2% (8,105) 12,340 -165.7%

(+) non disbursed financial expenses 6,300 2,217 184.2% 25,200 3,269 n/a

(+) non-cash taxes 849 4,344 -80.5% 13,495 3,497 285.9%

(=) Adjusted FFO 32,443 19,398 67.2% 124,700 71,976 73.3%

Margin AFFO % 52.6% 39.8% 12.8 p.p. 60.3% 45.0% 15.3 p.p.


1122

CAPEX

The Company invested was of R$207.6 million in 4Q10 and R$372.2 million in 2010, most of which allocated to Boulevard Shopping Belo Horizonte and Boulevard Shopping Belém, as well as the expansions to existing malls and the redevelopment of Shopping Santa Úrsula. We also acquired a 50% interest in Parque Shopping Belém and Boulevard Shopping Campos, both of which are under development, and increased our stake in Boulevard Shopping Campina Grande and Supershopping Osasco by 6.00% and 2.06%, respectively. We also acquired a site adjacent to Via Parque Shopping. For further details, see the Growth Drivers section.

Operating Highlights In 4Q10, the Company’s operating indicators performed extremely well, as in the rest of the year.

Net Operating Income (NOI/sqm)

NOI/sqm increased by 10.5% over 4Q09, due to the strong performance of our malls, the expansions and the opening of Boulevard Shopping Belo Horizonte in October 2010. Excluding the impact of this inauguration, NOI grew by 22.0%, more than in previous quarters.

Same-store rent (SSR) In 4Q10, same-store rent (SSR) and same-area rent (SAR) confirmed our expectations and recorded their highest-ever growth, even exceeding the excellent performance in the previous quarter. Fourth-quarter SSR and SAR increased by 12.1% and 11.9% over 4Q09, respectively. As we expected, the New Generation assets once again outperformed the Core assets, recording SSS growth of 19.1% in 4Q10, versus 7.7% for the Core assets. We expect to maintain this growth in 1Q11, mainly due to the impact from rent increases in the last nine months and the adjustments to be imposed until March 2011. It is also worth noting the positive contribution of Boulevard Shopping Belém, whose same-store results were included in 4Q10 after completing one year of operations, and which should continue to show great performance in 2011. Occupancy Rate

In 4Q10, the occupancy rate in our shopping malls, excluding Boulevard Shopping Belo Horizonte, inaugurated in October 2010, was of 97.9%. To reflect the evolution of our occupancy rate, the present data include the recently inaugurated Boulevard Brasília (June 2009) and Boulevard Belém (November 2009).

67.1 72.2

52.3

62.3

4Q09 4Q10 4Q09 4Q10

SSR (R$/m²)¹

7.7%

19.1%


¹ Monthly average

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

41,7 43,446,5

51,1

49,8 49,2 51,256,0

52,959,4 61,4 62,2

NOI (R$/sqm)¹

2008 2009 2010¹ monthly average

96.9% 97.0%97.3%

97.9% 97.9%

4Q09 1Q10 2Q10 3Q10 4Q10

Occupancy Rate(%)

1133

Occupancy Cost (% of sales) In 4Q10, occupancy costs recorded another year-on-year decline, falling from 9.4%, in 4Q09, to 9.2%. Both Core and New Generation assets posted occupancy costs in line with the Company’s average. The recently inaugurated Boulevard Shopping Belo Horizonte entered the New Generation group and made a major contribution to reducing the group's indicator, underlining its growth potential. Note that the occupancy cost continued to decrease despite the upturn in SSR, due to strong quarterly sales expansion, sustaining our expectations of further rent growth in the coming quarters.

Growth Drivers In accordance with our greenfields and expansions project schedule, by the end of 2012, we should achieve already contracted owned GLA of 352,500 sqm, 33.7% up on 2010. It is important to mention that approximately 15% of the current owned GLA have opened during the 4Q10.

Greenfield Projects Boulevard Shopping Campos In December 2010, Aliansce acquired a 50% interest in Boulevard Shopping Campos, a mall whose planning, management and leasing were already under the Company’s responsibility. The mall is currently under construction and is scheduled to open April 26, 2011. The mall will have approximately 19,000 sqm of GLA, with 90 stores, including four anchor stores and five mega stores, a multiplex cinema and more than 1,000 parking spaces. The mall’s GLA is already 95% leased. On February 8, 2011, we held an event to celebrate the handing over of the keys to the tenants, symbolizing the beginning of works in the malls’ stores.

9,2% 9,2% 9,1% 9,2%

4Q09 4Q10 4Q09 4Q10

Occupancy Cost (% sales)


DevelopmentsExpansions

263,706

352,537

12,921

16,406

9,50031,984

18,020

2010 2011 2012 End 2012

Owned GLA evolution

33.7%

Boulevard Campos

BH Tower +Parque Shopping Maceió +

Parque Shopping Belém

1144

Parque Shopping Belém Parque Shopping Belém will have approximately 28,100 sqm of GLA, and under construction company definition phase. After all the initial projects are over and the earth has been leveled, we expect to begin the structural works in 1Q11. We advanced in leasing efforts and 50% of GLA has already approved proposals. The project also includes a second pavement expansion with approximately 6,500 sqm of GLA and a multi-use project with a commercial tower integrated to the mall.

Parque Shopping Maceió In the fourth quarter, we proceeded with all the pre-construction projects and expect to conclude them in the beginning of

2Q11. With the entire earthmoving project being completed, worth noting given the size of the site, the actual leveling will get

under way in 1Q11, both in the area of the mall itself and the area reserved for future real estate development.

The schedule remains unaltered with launch schedule for the first half of 2011 and inauguration for 4Q12.

The mall’s project had some minor adjustments, increasing its GLA to 35,868 sqm. Investments were adjusted considering

already concluded projects and revenue was revised based on the leasing table to be adopted in its launch.

State Campos dos Goytacazes, RJ

GLA 19,000 sqm

Launch April, 2010

Expected Opening April 26, 2011

Ownership 50%

IRR (real and unleveraged) 15%

Net Key Money R$ 1.3 million

CAPEX R$ 42.1 million

% of Capex invested 74%

Projected NOI 1st year R$ 3.6 million

Projected NOI 3rd year R$ 4.1 million

Boulevard Shopping Campos

Boulevard Shopping Campos - 28/01/2011

% Aliansce

State Belém, PA

GLA 28,100 sqm

Launch August, 2010

Expected Opening 2Q12

Ownership 50%







Parque Shopping Belém

% Aliansce

1155

Expansions Ongoing Projects Projects with openings scheduled for 2011 and beginning of 2012 will add approximately 12,900 sqm to the Company’s owned GLA.

Expansion of Iguatemi Salvador Continuing with its redevelopment, in addition to the inauguration of the food court, which was totally renewed, the Leader anchor store was inaugurated with a GLA of 2,853 sqm. The two planned mega stores have already been handed over to their tenants (Casas Bahia and Le Biscuit) and are scheduled to open in 1Q11. The fitness center, with 2,628 sqm of GLA will be inaugurated in 2Q11. The deck parking is in its final stage of construction, with only the last floor to be concluded. In fact, 50% of its area was freed for use in December. From the total capex of the expansion, 91% has already been invested by the end of 2010. Expansion of Bangu Shopping In December 2010, we successfully inaugurated the mall’s first expansion phase, adding 5,600 sqm of GLA. Continuing with the second phase of the expansion, the medical center with 2,000 sqm of GLA had its inauguration rescheduled for the 4Q11. In addition to the medical center, in the 4Q11 we also intend to inaugurate a 4,500 sqm of GLA expansion, comprising a multi-use complex with office space and car dealership. Expansion of Via Parque Shopping The structural reinforcement works for the first expansion phase are in the advanced stage and should be concluded in 2Q11. We are under final negotiations with the anchor store (C&A), which represent 54% of this phase GLA and we expect to start the leasing of in line stores in the 1Q11. All necessary projects for the execution of the second phase of the expansion have already been contracted and should be completed in late 1Q11. Negotiations with the movie theaters complex have already been concluded and inauguration is scheduled for 3Q12. The other anchors of this phase have opening schedule to 2Q12.

State Maceió, AL

GLA 35,868 sqm

Launch 1H11

Expected Opening 4Q12

Ownership 50%







% Aliansce

Parque Shopping Maceió

CAPEXNet Key

Money

NOI 1st

year

NOI 3rd

year

Iguatemi Salvador Expansion BA 1Q11 4,619 41.59% 1,921 5.6 1.5 0.8 0.9 100% 26%Bangu Expansion - Medical Center + Offices RJ 4Q11 6,500 100.00% 6,500 10.8 -0.7 3.6 4.1 55% 40%Via Parque Shopping Expansion - Phase 01 RJ 4Q11 4,586 69.62% 3,193 6.8 0.0 1.8 2.0 54% 38%Campina Grande Expansion - Phase 01 PB 1Q12 3,579 36.52% 1,307 4.9 0.1 0.6 0.6 65% 16%

Total 19,284 12,921 28.1 0.9 6.8 7.6

% LeasedIRR

(p.a.)Ongoing Projects State Opening

GLA

(sqm)

%

Aliansce

% Aliansce (R$ million)Owned

GLA (sqm)

1166

Expansion of Boulevard Shopping Campina Grande The first phase of the expansion of Boulevard Shopping Campina Grande is already under the project revision phase, which should be concluded in 1Q11. Commercial launch is expected at the end of 1Q11, although a large number of stores have already been reserved by store owners. The next phases of the expansion project have its opening planned for the 3Q12 and 2Q13. Future Expansions Projects scheduled for inauguration in 2012 will add approximately 16,400 sqm to the Company’s owned GLA.

Real Estate Projects Boulevard Shopping Belo Horizonte Tower This 16-floor tower will have a private area of 18,020 sqm and 300 parking spaces. The project has already been approved and the foundations have been laid. The triple A tower will be the most modern in Belo Horizonte, and will be built to the highest standards, including green building certification. Market surveys indicate strong demand for this type of development in the city, where vacancy is close to zero. Aliansce holds a 100% interest in the tower and 70% in the mall.

Site in Barra da Tijuca, Rio de Janeiro, adjacent to Via Parque Shopping The Company owns an 18,256 sqm site in Barra da Tijuca, one of the most upscale regions of Rio de Janeiro, close to the city's main real estate launches. This region will also absorb 70% of the investments for the 2016 Olympic Games. We are currently studying a variety of different projects for the area, but it represents a unique opportunity for a project connected to Via Parque Shopping.

Shopping Taboão SP 2Q12 6,053 38.00% 2,300Via Parque Shopping - Movie Theaters RJ 2Q12 3,414 69.62% 2,377Caxias Shopping RJ 2Q12 5,000 40.00% 2,000Shopping Grande Rio RJ 2Q12 5,000 25.00% 1,250Boulevard Shopping Campina Grande - Phase 02 PB 3Q12 1,817 36.52% 664Iguatemi Salvador BA 4Q12 8,500 41.59% 3,535Carioca Shopping - Poupa Tempo RJ 4Q12 10,700 40.00% 4,280

Total 40,484 16,406

Owned GLA

(sq.m.)Future Expansions State Opening

GLA

(sq.m.)% Aliansce

1177

Indebtedness and Cash and Cash Equivalents Aliansce closed 4Q10 with gross debt of R$683.3 million, R$14.1 million less than at the end of the previous quarter. The current debt profile has an average maturity of 8.8 years, with 95.5% indexed to the TR reference rate and the IPCA consumer price index. The close-of-4Q10 cash position came to R$316.6 million, a reduction of R$118.3 million in relation to 3Q10 due to interim investments. Most cash is managed by an Exclusive Fund, which in the twelve months ended December 31, 2010 generated returns equivalent to 101.7% of the CDI overnight rate (for more details, see the 4Q10 Quarterly Information - ITR). On December 31, 2010, Aliansce’s net debt after financial investments stood at R$366.7 million (or R$305.8 million, excluding minority interest). The level of debt is compatible with cash flow, thanks to the low volatility of the debt indicators and the long-term amortization profile. In 2010, the payment of principal and interest on long-term receivables-backed financing (including interest appropriated to investments) totaled R$57.8 million, equivalent to 29.7% of net revenues.

In March 2011, the Company launched real estate receivables certificates (CRIs) to raise up to R$83.0 million, with costs of approximately IPCA+8%, and increase the amount of cash available for investments. In addition, we expect to reduce the amortization term and reduce the cost of part of our debt by approximately 180 bps by settling obligations from the acquisition of 30% of Bangu Shopping.

Debt breakdown Short-Term Long-Term Total Debt

Banks 30,774 133,292 164,066

CCI/ CRI 45,734 415,472 461,206

Obligation for purchase of assets - 58,008 58,008

TOTAL DEBT 76,508 606,772 683,280

Cash and Cash Equivalents (316,620) - (316,620)

NET DEBT (240,112) 606,772 366,660

-

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Other

TJLP

CDI

IPCA

TR

R$

Mil

lio

n

Debt Balance Projection

TR73.3%

IPCA22.4%CDI

3.5%

TJLP0.7%

Others0.4%

Debt Profile

39.6 65.0 51.1 103.7 60.4 65.6 71.5 74.3 63.1 41.1 25.6 14.3

39.6

63.5

49.1 52.258.6 64.4

70.8 74.263.6

42.232.2

24.611.6

3.1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Principal Amortization Schedule with New Project Finance - R$ MillionActual

With New CRIs

1188

Stock Performance Aliansce shares, traded in the Novo Mercado listing segment of the BM&F Bovespa under the ticker ALSC3, closed 2010 at

R$13.70, 53.1% up in the year.

In the same period, the Bovespa index increased by 5.7%, while the Small Cap Index (SMLL) increased by 28.2%. In 4Q10,

average daily traded volume in the last 30 days averaged R$3.9 million.

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Aliansce - base = 100 IPO (28/01/2010)

Volume (milhões R$) ALSC3 Ibovespa

Volume

Free Float52.57%

GGP31.44%

Rique Empreen-dimentos

e Part.12.74%

Gávea Investim.

2.01%

Mgmt1.24%

Shareholder Base

(R$ Million)

1199

Glossary GCA: Gross Commercial Area, equivalent to the sum of all the commercial areas of the shopping malls, i.e. GLA plus store areas sold.

GLA (Gross Leasable Area): equivalent to the sum of all areas available for leasing in shopping malls, except for kiosks and sold areas.

Own GLA: refers to total GLA weighted by Aliansce’s interest in each shopping mall.

CAGR: compound annual growth rate.

Key Money: the amount charged to merchants for the right to use the project’s technical infrastructure, applicable to contracts with terms longer than 60 months.

Net Key Money: key money net of leasing costs.

CPC: Accounting Pronouncements Committee.

MBS: mortgage-backed securities.

Occupancy Cost as % of Sales: rent (minimum + percentage) + common charges (excluding specific charges) + merchandising fund.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): net revenue – operating costs and expenses + depreciation and amortization.

Adjusted EBITDA: EBITDA + pre-operating expenses – lawsuits + other non-recurring expenses (revenues).

Adjusted FFO (Funds from Operations): net income + depreciation + amortization – nonrecurring expenses and revenues + SWAP effect + unpaid financial expenses + non-cash taxes.

FIIVPS: Fundo de Investimento Imobiliário Via Parque Shopping, a real estate investment fund.

Delinquency: the ratio between total period billings and total revenue received for the same period, calculated on the last business day of that period.

Federal Law 11,638: on December 28, 2007, Federal Law 11,638 was enacted with the purpose of including publicly-held

companies in the international accounting convergence process. CConsequently, certain financial and operating results were

subject to accounting effects due to the changes introduced by the new law.

Anchor Stores: large, well-known stores with special marketing and structural features that attract consumers, thereby ensuring permanent flows and uniform traffic in all areas of the shopping mall.

Satellite Stores: small stores with no special marketing and structural features located around the anchor stores and intended for general retailing.

NOI (Net Operating Income): Gross mall revenue (excluding revenue from services) + parking revenue –mall operating costs – provision for doubtful accounts.

PDA: Provision for Doubtful Accounts.

SAR (Same-area rent): ratio between the rent earned in a same store in current versus the previous year. Excludes Shopping Santa Úrsula (undergoing renovation).

SAR (Same-area sales): ratio between sales in the same area in the current versus the previous year. Excludes Shopping Santa Úrsula (undergoing renovation).

2200

SSR (Same-store rent): ratio between the rent earned in the same store in the current versus the previous year. Excludes Shopping Santa Úrsula (undergoing renovation).

SSS (Same-store sales): ratio between sales in the same store in the current versus the previous year. Excludes Shopping Santa Úrsula (undergoing renovation).

Occupancy Rate: total mall GLA divided by the area leased at the end of the period in question.

Sales: reported sales of stores in each of the shopping malls in the quarter.

Appendices Reconciliation of the consolidated and managerial financial statements The Company's managerial financial information was prepared to reflect/consolidate Aliansce’s interest in Via Parque

Shopping and the spin-off that led to the exclusion of Shopping Leblon from Aliansce’s portfolio in 2009.

Aliansce’s investments in Via Parque Shopping are made through Fundo de Investimento Imobiliário Via Parque Shopping

(FIIVPS) and, for accounting purposes, are recognized in the consolidated financial statements as financial investments.

Accordingly, the mall’s operating results are not consolidated in Aliansce’s balance sheet and the investment is recorded at

market value as determined by Law 11,638. For managerial financial information purposes, we have considered Aliansce’s

69.62% interest in Via Parque Shopping on December 31, 2010 as if it had existed throughout 2010 and 2009 in order to

permit a comparative analysis of results.

Income from Aliansce's interest in Shopping Leblon, held through Cencom and Frascatti, was excluded from the consolidated

managerial figures in order to reflect the partial spin-off that occurred in October 2009 in the managerial financial statements

of December 31, 2009.

Finally, the managerial financial statements were prepared based on the balance sheets, income statements and financial

reports of the respective companies and developments, as well as assumptions deemed to be reasonable by the Company's

Management, and they should be read in conjunction with the period’s financial statements and respective notes.

We present below the reconciliation of accounting versus managerial financial statements for the years ended December 31, 2009 and 2010:

2211

Conciliation between managerial financial information

vs financial statements

Period ended December 31, 2009

Gross revenue from rental and services 151,697 20,024 - 171,721 Taxes and contributions and other deductions (11,629) (158) - (11,787)

Net revenues 140,068 19,866 - 159,934

Cost of rentals and services (46,246) (8,758) - (55,004)

Gross income 93,822 11,108 - 104,930

Operating income/expenses Administrative and general expenses (26,535) - (26,535) Equity income 10,315 - (9,933) 383 Depreciation and Amortization (285) - - (285) Other operating income/(expenses) 23,644 6,080 1,291 31,015

7,139 6,080 (8,642) 4,578

Financial income/(expenses) (32,430) 184 - (32,246)

Net income/(loss) before taxes and minority interest 68,531 17,372 (8,642) 77,262

Income and social contribution taxes (15,744) - (15,744)

Minority Interest (5,072) - - (5,072)

Net income/(loss) for the period 47,715 17,372 (8,642) 56,446

Conciliation of EBITDA / adjusted EBITDA and FFO/ ajusted FFO


Net revenues 140,068 19,866 - 159,934

(-) Cost of rentals and services (46,246) (8,758) - (55,004) (-)(+) Operating income/(expenses) 7,139 6,080 (8,642) 4,578 (+) Depreciation and Amortization 19,517 608 - 20,125

EBITDA 120,478 17,796 (8,642) 129,633 MARGIN EBITDA % 86.0% 81.1%

(+) Non recurring expenses (17,621) (6,080) - (23,701)

ADJUSTED EBITDA 102,857 11,716 (8,642) 105,932 MARGIN OF ADJUSTED EBITDA % 73.4% 66.2%

Net income 47,715 17,372 (8,642) 56,446

(+) Depreciation and Amortization 19,517 608 - 20,125

(=) FFO 67,232 17,980 (8,642) 76,571 MARGIN OF FFO % 48.0% 47.9%

(+/-) Non recurring expenses (17,621) (6,080) - (23,701)

(+) SWAP 12,340 - - 12,340

(+) Financial expenses not paid 3,269 - - 3,269

(+) non-cash taxes 3,497 - - 3,497

(=) ADJUSTED FFO 68,717 11,900 (8,642) 71,976 MARGIN OF AFFO % 49.1% 45.0%

(amounts in thousands of reais)


69.62% Shopping

Via Parque

Exclusion of income

from

Frascatti/Cencom

69.62% Shopping

Via Parque

Exclusion of income

from

Frascatti/Cencom

Aliansce

Consolidated

2009 - Financial

Statements

Aliansce

Consolidated

2009 - Managerial

Aliansce

Consolidated

2009 - Financial

Statements

Aliansce

Consolidated

2009 - Managerial

2222

Conciliation between managerial financial information

vs financial statements


Gross revenue from rental and services 207,746 20,574 (4,851) 223,469 Taxes and contributions and other deductions (16,620) (87) - (16,707) - Net revenues 191,126 20,487 (4,851) 206,762 - Cost of rentals and services (63,798) (6,412) 4,851 (65,359) - Gross income 127,328 14,075 - 141,403

Operating income/expenses Administrative and general expenses (32,586) - - (32,586) Depreciation and Amortization (368) - - (368) Other operating income/(expenses) 5,065 1,232 - 6,297

(27,889) 1,232 - (26,657)

Financial income/(expenses) (20,465) 648 - (19,817) - Net income/(loss) before taxes and minority interest 78,973 15,955 - 94,928 - Income and social contribution taxes (22,841) - - (22,841) - Minority Interest (1,567) - - (1,567) - Net income/(loss) for the period 54,565 15,955 - 70,520

Conciliation of EBITDA / adjusted EBITDA and FFO/ ajusted FFO

Period ended December 31, 2010(amounts in thousands of reais)

Net revenues 191,126 20,487 (4,851) 206,762

(-) Cost of rentals and services (63,798) (6,412) 4,851 (65,359) (-)(+) Operating income/(expenses) (27,889) 1,232 - (26,657) (+) Depreciation and Amortization 21,396 472 - 21,868 (1) - (1) EBITDA 120,834 15,779 - 136,613 MARGIN EBITDA % 63.2% 66.1%

(+)/ (-) Non-recurring (expenses)/income 2,953 (1,231) - 1,722 (+) Pré-operational expenses 6,901 - - 6,901 (-) Gain on investments - CPC 15/ICPC09 (4,460) - (4,460) (+/-) Others 512 (1,231) - (719)

ADJUSTED EBITDA 123,787 14,548 - 138,335 MARGIN OF ADJUSTED EBITDA % 64.8% 66.9%- Net income 54,565 15,955 - 70,520 - (+) Depreciation and Amortization 21,396 472 - 21,868

(=) FFO 75,961 16,427 - 92,388 MARGIN OF FFO % 39.7% 44.7%0(+)/ (-) Non current expenses/(income) 2,953 (1,231) - 1,722 - (+) SWAP (8,105) - - (8,105) - (+) Financial expenses not paid 25,200 - - 25,200 - (+) non-cash taxes 13,495 - - 13,495

(=) ADJUSTED FFO 109,504 15,196 - 124,700 MARGIN OF AFFO % 57.3% 60.3%

69.62% Shopping

Via Parque

Exclusion of income

from

Frascatti/Cencom


69.62% Shopping

Via Parque

Exclusion of income

from

Frascatti/Cencom

Aliansce

Consolidated

2010 - Financial

Statements

Aliansce

Consolidated

2010 - Managerial

Aliansce

Consolidated

2010 - Financial

Statements

Aliansce

Consolidated

2010 - Managerial

2233

Cash Flow

Aliansce Financial

Statements69.62% Via Parque

Aliansce Managerial

Consolidated

31/12/2010 31/12/2010 31/12/2010

Operating ActivitiesNet Profit for the period 56,132 15,955 72,087

Depreciation and Amortization 21,396 473 21,869 (Gain) loss on investments (4,460) (4,460) Deferred income and social contribution tax 13,494 - 13,494 Stock Option plan 1,392 - 1,392 Real Estate credit certificates 68,408 - 68,408 Fair value of financial derivatives instruments (8,105) - (8,105) Straight line rent adjustment (75) (100) (175)

Resources from income 148,182 16,328 164,509

Decrease (increase) in assets 25,493 (3,611) 21,882 Accounts receivable - clients (7,008) (658) (7,666) Accounts receivable 30,288 (1,267) 29,021 Taxes recoverable (4,805) 70 (4,735) Advances 873 (163) 710 Other credits 1,773 376 2,149 Judicial deposits - (1,969) (1,969) Related party transactions 4,372 - 4,372

Increase (decrease) in liabilities (41,050) 451 (40,599) Suppliers (10,068) 196 (9,872) Taxes and contributions payable 1,150 1,028 2,178 Deferred taxes (8,553) (104) (8,657) Other obligations 4,931 (669) 4,262 Deferred Revenue 2,058 - 2,058 Related party transactions (30,568) - (30,568)

Net Cash Generated in Operating Activities 132,625 13,168 145,793

Investment Activities

Investments in securites (233,928) (6,304) (240,232)

Investment in properties (252,175) 1,957 (250,218)

Decrease (increase) on investments 1 - 1

Obligation for purchase of assets (37,156) - (37,156)

Increase of intangible asset (13,399) - (13,399)

Net Cash Used in Investment Activities (536,657) (4,347) (541,004)

Financing Activities Capital increase 450,000 - 450,000 Stock issue expenses (20,770) - (20,770) Dividend payable (7,190) - (7,190) Increase in Loans and financing 29,231 - 29,231 Decrease in Real Estate receivable certificates (38,957) - (38,957)

Net Cash Generated in Financing Activities 412,313 - 412,313

Increase (Decrease) in Cash and Cash Equivalents 8,282 8,821 17,103

Cash and Cash Equivalents at the end of the Period 17,709 10,834 28,543 Cash and Cash Equivalents at the beginning of the Period 9,427 2,013 11,440

Increase in Cash and Cash Equivalents 8,282 8,821 17,103

Cash Flow Statement

2244

Balance Sheet

31/12/2010 (*) 30/09/2010 (*) 31/12/2010 30/9/2010 31/12/2010 30/9/2010 31/12/2010 30/9/2010

ASSETS

Current Cash and cash equivalents 17,709 12,118 10,834 7,561 - - 28,543 19,679 Accounts receivable 39,249 32,761 2,692 2,391 - - 41,941 35,152 Securities 288,077 415,230 - - - 288,077 415,230 Taxes recoverable 8,272 4,493 - - - - 8,272 4,493 Advances to third-parties 974 2,654 226 38 - - 1,200 2,692 Amounts receivable - CCI - 2,597 1,367 - - - 1,367 2,597 Other receivables 535 2,144 255 595 - - 790 2,739

Total Current Assets 354,816 471,997 15,374 10,585 - - 370,190 482,582

Non-Current Accounts receivable 1,001 1,054 - - - - 1,001 1,054 Securities 334,518 145,506 - - (334,518) (145,506) - - Amounts receivable 670 182 - - - - 670 182 Judicial deposits - 435 1,969 - - - 1,969 435 Related party transactions 14,327 21,094 - - - - 14,327 21,094 Deferred taxes 21,257 12,421 - - - - 21,257 12,421 Other receivables 4,131 6,730 - - - - 4,131 6,730

Investments 172 172 - - - - 172 172 Property, plant and equipment 1,295 1,133 - - - - 1,295 1,133 Property for investments 1,212,381 1,108,915 50,515 50,311 - 1,262,896 1,159,226 Intangible assets 231,005 230,535 - - - - 231,005 230,535

Total Non-current Assets 1,820,757 1,528,177 52,484 50,311 (334,518) (145,506) 1,538,723 1,432,982

Total Assets 2,175,573 2,000,174 67,858 60,896 (334,518) (145,506) 1,908,913 1,915,564

LIABILITIES

Current Loans and financing 30,774 43,280 - - - - 30,774 43,280 Real estate credit note 45,734 66,697 - - - - 45,734 66,697 Suppliers 11,049 12,707 219 91 - - 11,268 12,798 Taxes and contributions payable 6,131 4,035 1,417 330 (108,183) - (100,635) 4,365 Deferred taxes - - - - Obligations for purchase of assets - 7,156 - - - - - 7,156 Dividends payable 12,959 - 9,207 416 (9,207) (416) 12,959 -

Others 12,154 11,465 465 423 - - 12,619 11,888

Total Current Liabilities 118,801 145,340 11,308 1,260 (117,390) (416) 12,719 146,184

Non-Current Liabilities Loans and financing 133,292 130,156 - - - - 133,292 130,156 Real estate credit note 415,472 391,558 - - - - 415,472 391,558 Obligations for purchase of assets 58,008 55,524 - - - - 58,008 55,524 Related party transactions 1,233 31,258 - - - - 1,233 31,258 Deferred income 50,187 50,775 - - - - 50,187 50,775 Provision for contingencies 10,986 10,567 881 - - - 11,867 10,567 Derivative financial instruments 4,235 3,024 - - - - 4,235 3,024 Deferred income and social contribution tax 139,696 65,132 - - - (44,044) 139,696 21,088 Other liabilities 5,126 3,709 141 881 - - 5,267 4,590

Total Non-Current Liabilities 818,235 741,703 1,022 881 - (44,044) 819,257 698,540

Shareholders' Equity Capital 916,342 916,342 96,144 96,144 (96,144) (96,144) 916,342 916,342 Capital Reserve (22,074) (22,618) - - - - (22,074) (22,618) Legal Reserve 4,242 1,514 - - - - 4,242 1,514 Reserve for investments 64,875 - - - - - 64,875 - Accumulated profit (losses) 68,815 (40,616) (37,389) 90,342 81,676 49,726 113,102 Equity evaluation adjustment 192,077 67,330 - - (211,326) (86,578) (19,249) (19,248) Shares acquisition - non - controlling / minority interest 10,438 9,850 - - 10,438 9,850

Minority Interest 72,637 71,898 - - - - 72,637 71,898

Total Shareholders' Equity 1,238,537 1,113,131 55,528 58,755 (217,128) (101,046) 1,076,937 1,070,840

Total liabilities and shareholders' equity 2,175,573 2,000,174 67,858 60,896 (334,518) (145,506) 1,908,913 1,915,564

(*) Aliansce Consolidated financial information contemplates the effects of IFRS.

69.62% Via ParqueAliansce Managerial

ConsolidatedManagerial Balance SheetAliansce Financial Statements Consolidation Cross off

2255

Comparison of the consolidated and managerial financial statements for the periods ended December 31, 2009 and 2010:

Note: Includes the consolidation of 69.62% of the investment in Via Parque Shopping and excludes Shopping Leblon’s results for the financial statements dated December 31, 2009.

Consolidated Financial Statements 4Q10 4Q094Q10/4Q09

Δ%2010 2009 2010/2009 Δ%

Gross revenue from rental and services 62,915 46,481 35.4% 207,746 151,697 36.9%

Taxes and contributions and other deductions (5,370) (3,430) 56.6% (16,620) (11,629) 42.9%

Net revenues 57,545 43,051 33.7% 191,126 140,068 36.5%

Cost of rentals and services (25,209) (14,647) 72.1% (63,798) (46,246) 38.0%

Gross income 32,336 28,404 13.8% 127,328 93,822 35.7%

Operating income/expenses (2,331) 19,822 -111.8% (27,890) 7,139 -490.7%

Administrative and general expenses (7,899) (8,332) -5.2% (32,587) (26,535) 22.8% Equity income - 5,631 -100.0% - 10,315 -100.0% Depreciation and Amortization expenses (110) (38) 189.5% (368) (285) 29.1% Other operating income/(expenses) 5,678 22,561 -74.8% 5,065 23,644 -78.6%

Financial income/(expenses) (15,247) (10,773) 41.5% (20,465) (32,430) -36.9%

Net income/(loss) before taxes and minority interest 14,758 37,453 -60.6% 78,973 68,531 15.2%

Current income and social contribution taxes (3,270) (5,763) -43.3% (9,346) (12,247) -23.7%

Deferred income and social contribution taxes (849) (4,344) -80.5% (13,495) (3,497) 285.9%

Minority Interest 1,076 (1,437) -174.9% (1,567) (5,072) -69.1%

Net income/(loss) for the period 11,715 25,909 -54.8% 54,565 47,715 14.4%


Δ%2010 2009 2010/2009 Δ%

Gross revenue from rental and services 67,104 52,236 28.5% 223,469 171,721 30.1%

Taxes and contributions and other deductions (5,387) (3,469) 55.3% (16,707) (11,787) 41.7%

Net revenues 61,717 48,767 26.6% 206,762 159,934 29.3%

Cost of rentals and services (24,697) (16,867) 46.4% (65,359) (55,004) 18.8%

Gross income 37,020 31,900 16.0% 141,403 104,930 34.8%

Operating income/expenses (1,926) 18,581 -110.4% (26,658) 4,578 -682.3%

Administrative and general expenses (7,899) (8,333) -5.2% (32,586) (26,535) 22.8% Equity income - 69 -100.0% - 383 -100.0% Depreciation and Amortization expenses (111) (137) -19.1% (368) (285) 29.1% Other operating income/(expenses) 6,084 26,982 -77.5% 6,296 31,015 -79.7%

Financial income/(expenses) (14,734) (10,747) 37.1% (19,817) (32,246) -38.5%

Net income/(loss) before taxes and minority interest 20,360 39,734 -48.8% 94,928 77,262 22.9%

Current income and social contribution taxes (3,270) (5,763) -43.3% (9,346) (12,247) -23.7%

Deferred income and social contribution taxes (849) (4,344) -80.5% (13,495) (3,497) 285.9%

Minority Interest 1,076 (1,437) -174.9% (1,567) (5,072) -69.1%

Net income/(loss) for the period 17,317 28,190 -38.6% 70,520 56,446 24.9%



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