Allos (ALOS3) Q3 2024 earnings summary

Executive summary

• Total sales reached R$9.5 billion in 3Q24, up 8.0% year-over-year, with sales per sqm up 9.2% to R$1,862 and strong regional growth, notably at Shopping Campo Limpo (+29.1%).

• Shopping Campo Grande expanded with 12.2k sqm added GLA and 150 new stores, reinforcing regional leadership and loyalty program rollout.

• Media revenue grew 29.7% year-over-year to R$46.1 million, now representing 6.7% of gross revenue.

• ALLOS was named Company of the Year by Exame and best in real estate by Valor Econômico, highlighting operational excellence.

• Monthly dividends and R$1.4 billion returned to shareholders via dividends and buybacks in 2024, representing 11.9% of market cap.

Financial highlights

• Net revenue reached R$643.0 million in 3Q24, up 8.5% year-over-year, driven by media and parking revenue growth.

• Adjusted EBITDA grew 6.6% year-over-year to R$468.0 million, with a margin of 72.8%.

• NOI rose 4.5% to R$556.1 million, with a margin of 92.7%.

• FFO per share grew 37.2% year-over-year to R$0.58, with FFO margin up 7.2 p.p. to 47.8%.

• Net income attributable to shareholders was R$112.8 million in 3Q24, reversing a loss in 3Q23.

Outlook and guidance

• Loyalty program rollout to all malls by end-2025, with 85% increase in benefit redemptions in pilot locations.

• Guidance for annual CapEx is BRL 450-500 million, with expectations to maintain this level in coming years.

• EBITDA growth guidance for 2025 will be provided after Q4 results, with positive trends in rent and occupancy.

• Continued focus on digital transformation, retail media expansion, and operational excellence.

• Ongoing expansion projects, including Shopping Campo Grande, to add 12.2k sqm GLA and 150 new operations.