Iguatemi (IGTI3) Q3 2024 earnings summary

Executive summary

• Total sales reached R$4.9 billion in 3Q24, up 9.7% year-over-year, with same-store sales up 8.9% and occupancy rate at 95.9%.

• Net revenue increased up to 9.9% year-over-year, with net income rising 69.4% to R$101.2 million and adjusted net income up 16.3%.

• Operational improvements included new international tenants, ongoing tenant mix upgrades, and major recognitions for flagship malls and HR initiatives.

• Portfolio optimization through asset recycling and acquisitions, including stakes in Rio Sul and divestments in São Carlos and Alphaville.

• Net delinquency rate reached a record low of -3.1%, reflecting strong recovery and operational improvements.

Financial highlights

• Net revenue grew up to 9.9% year-over-year, with gross revenue reaching R$366.6 million and EBITDA up to R$250.8 million, margin at 77.5%.

• FFO increased up to 44.7% year-over-year, with margins surpassing 50%.

• NOI margin remained high at 92.3% in 3Q24; adjusted net margin was 36.6%, up 2.8 p.p.

• Occupancy cost dropped to 11%, the lowest in 11 years for the period.

• Net financial result improved, with net finance costs reduced by 43.7% and net debt/EBITDA at 1.67x.

Outlook and guidance

• 2024 guidance reaffirmed: net revenue growth for malls at 4–8%, EBITDA margin for malls at 82–85%, and total investments between R$190–230 million.

• Strong October sales (+9% YoY), high occupancy, and low delinquency support expectations for higher margins in 4Q24.

• CapEx expected at the top of guidance, with a pause in works during December for customer experience.

• Focus remains on optimizing malls, improving store mix, and expanding landbank for future growth.