How to Build Aliansce’s Model?

Main Sources of Revenue

Aliansce’s main source of revenues derives from its direct or indirect proportional ownership interests in malls, calculated in accordance with the percentage of interest held in each development. These revenues are as follows:

  • Revenues from rental of commercial spaces, usually under five-year agreements;
  • Revenues received from the temporary rental of kiosks and merchandising in malls;
  • Revenues received from the assignment of the right to use the infrastructure in malls;
  • Fees from the operation of parking areas;
  • Transfer rates received upon a change in tenants.

The rendering of services, a strategic part of the Company’s business, also represents an important source of revenues. The main services are:

  • Management services provided to malls and their condominiums;
  • Services provided for the marketing/sale of commercial spaces;
  • Planning, development, marketing and administration services.

Among the revenues mentioned above, the revenues from the lease of commercial spaces represent the Company’s main source of revenues. These revenues are generally based upon the higher of (i) a fixed minimum agreed lease amount, based on market values, as paid monthly by the tenant and, in December each year, double this amount, and (ii) a variable percentage lease (also known as "overage" rent) calculated as a percentage of the tenant’s monthly sales.

Key money derives primarily from new launches or expansions, but also from the repossession of commercial space due to default or as part of business negotiations. In accounting terms, Aliansce classifies the realization of these revenues over the period of the lease agreement they are associated with.


Taxes, contributions and other deductions represent discounts and taxes levied on Aliansce’s gross revenue from rentals and services, including the following Social Contribution Tax on Gross Revenues (Programa de Integração Social - PIS); (ii) Social Security Financing Tax on Gross Revenues (Contribuição para o Financiamento da Seguridade Social - COFINS); (iii) Service Tax (Imposto sobre Serviços - ISS); and (iv) Discounts or rebates granted to tenants as stipulated in the applicable rental agreements.

Main Costs

Cost of rentals and services 

The Company’s cost of rentals and services are paid by the condominiums and primarily represent mall costs in proportion to Aliansce’s interests, calculated as a percentage of its direct or indirect interests in each venture. These are primarily comprised of: (i) Expenditures with rented properties; (ii) Depreciation; (iii) Parking costs; (iv) Provision for Doubtful Accounts; (v) Services relating to agreements with third parties; and (vi) as a result of the changes arising from new Law No. 11,638/07, in 2010, the cost of its companies contemplates pre-operating expenses not directly associated to the development, such as sales expenses, marketing, and administrative expenses.

Operating income (expenses) 

Operating income (expenses) are not directly related to the Company’s interests in the malls, and are incurred for the management of its subsidiaries. They include: (i) Personnel expenses; (ii) Legal expenses; (iii) Administrative expenses; (iv) Equity in income of subsidiaries and associated companies; and (v) Amortization of goodwill.

Income and social contribution taxes 

These taxes are computed on a monthly basis under the annual real profit regime, except for certain subsidiaries and companies under common control, whose taxes are calculated and paid on the basis of the presumed profit regime. Social contribution on net profit (Contribuição Social sobre Lucro Liquido), or CSLL, is calculated at the rate of 9.0% on adjusted income under current legislation. A provision for income taxes is recorded at the gross amount, based on a basic rate of 15.0%, plus a 10.0% surcharge. For companies taxed under the presumed profit regime, the income tax base is calculated at 32.0% of rentals and services and 100.0% of financial income; the CSLL is calculated at 32.0% on gross revenues, on which nominal rates are applied.

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