Allos (ALOS3) Q2 2025 earnings summary

Executive summary

• Achieved strong sales growth in Q2 2025, with total sales up 9.5% year-over-year to over R$10.2 billion and SSS up 7.1%.

• Net revenue rose 8.4% to R$656.4 million, driven by rental, parking, and services growth, with NOI up 8.5% to R$579.8 million and EBITDA margin at 72.5%.

• FFO reached R$304.6 million, up 1.9% year-over-year, with FFO per share up 8.8% due to share buybacks.

• Occupancy rate remained high at 96.4% in Q2 2025, with 188 new contracts signed and 77 more in July.

• Continued focus on portfolio strength, digital engagement, mixed-use development, and prudent capital allocation.

Financial highlights

• Net revenue for Q2 2025 was R$656.4 million (+8.4% YoY), with NOI at R$579.8 million (+8.5% YoY, margin 93.3%) and adjusted EBITDA at R$475.7 million (+10.8% YoY, margin 72.5%).

• FFO for the quarter was R$304.6 million (+1.9% YoY), with FFO per share up 8.8%.

• Media revenue grew 31.3% YoY to R$46 million, now 6.4% of gross revenue.

• Occupancy cost decreased to 9.7% in Q2 2025, and net delinquency improved to -1.2%.

• Returned R$456.4 million to shareholders in H1 2025, representing 78.8% of FFO.

Outlook and guidance

• No changes to 2025 guidance for dividends, EBITDA, or multi-use projects; CAPEX expected at the lower end of guidance.

• Expansion of the Benefits Program APP to 34 malls by July 2025, connecting thousands of brands to over 5 million new potential consumers.

• Media operations expanded through a 10-year contract to manage out-of-home media in 17 airports, with operations starting in July 2025.

• Media revenue from airport contracts to ramp up gradually, reaching full maturity over the next year.

• Ongoing expansion and redevelopment projects in key malls, with several major openings scheduled through 2027.