Iguatemi (IGTI3) Q1 2025 earnings summary

Executive summary

• Total sales reached R$5.0 billion in 1Q25, up 17% year-over-year, with market share rising from 7.4% in 2019 to 10.7% in 2024 and strong portfolio differentiation driving above-market growth.

• Occupancy rate improved by 2.5 p.p. to 96.6%, reflecting a "flight to quality" among tenants and new high-profile brands like H&M and Sephora.

• Major M&A included R$2.6 billion acquisition of Pátio Paulista and Pátio Higienópolis (Iguatemi share: R$700 million), and a binding MoU to sell 49% stakes in Market Place and Galleria for R$500 million.

• Board strengthened with two new independent members (now 62.5% independent); CEO transition to Ciro Neto.

• ESG initiatives advanced, with CDP rating improving from C to B, emissions reduced, and new sustainability projects completed.

Financial highlights

• Adjusted revenue grew 8.5% to R$330.0 million; net revenue up 11.4% to R$315.4 million; gross revenue rose 8.7% to R$371.4 million.

• Adjusted EBITDA reached R$244.3 million (up 8.5%), with margin at 74.0%; EBITDA rose 17.4% to R$233.1 million.

• Net income grew 32.6% to R$107.5 million; adjusted net income up 5.1% to R$113.9 million; net margin at 34.5%.

• NOI margin improved to 91.8%; same-store sales up 6.3%, same-area sales up 7.6%.

• Net financial result worsened by 33.2% due to higher debt and CDI rates.

Outlook and guidance

• 2025 guidance reaffirmed: net revenue growth for malls of 7–11%, EBITDA margin for malls at 82–85%, and total EBITDA margin at 75–79%.

• Focus on extracting synergies from acquisitions, maintaining high occupancy, and rental growth.

• CAPEX for 2025 expected at R$120–150 million for expansion and R$50–60 million for real estate development.

• Expansion projects in Brasília and São Paulo rooftop expected to drive mid-term growth.

• Ongoing repricing of media agreements and digital media revenue to support temporary rent growth.