Allos (ALOS3) Q4 2023 earnings summary

Executive summary

• 2023 marked the first year of integration; operations continued without disruption, with integration and synergy capture remaining strategic priorities.

• 2023 FFO rose 16.3% to R$1,223.7m; 4Q23 FFO increased 15.1% to R$432.6m.

• Portfolio comprised 98 malls across 49 cities; five malls were added during 2023.

Financial highlights

• 2023 net revenue excluding straight-line rent adjustments was R$2,709.7m, up 8.1%; 4Q23 net revenue was R$817.5m, up 5.2%.

• Adjusted EBITDA excluding straight-line rent adjustments reached R$2,017.4m in 2023, up 10.5% pro forma; 4Q23 was R$620.7m, up 8.3%.

• 2023 NOI excluding straight-line rent adjustments was R$2,435.0m, up 8.2% pro forma; 4Q23 was R$758.0m, up 7.7%.

• Total sales grew 8.0% to R$39.8bn in 2023 and 6.7% to R$12.3bn in 4Q23; new-store sales rose 26.6% in 4Q.

• FFO per share increased 18.5% to R$2.21 in 2023 and 17.3% to R$0.78 in 4Q23, benefiting from share repurchases.

Outlook and guidance

• 2024 EBITDA guidance is R$1.97bn–R$2.05bn, with midpoint 6.5% above 2023 pro forma after ~R$160m of divestment-related operating-result deductions.

• 2024 net debt/EBITDA guidance is 1.9x–2.3x; CAPEX guidance is R$450m–R$550m.

• Proposed 2024 distribution is 50% of 2023 FFO, or R$611.9m, subject to the AGM proposal.

• Real estate pipeline includes 6.8m sqm of development potential, with R$3.6bn potential sales value and R$430m cash generation.