Iguatemi (IGTI3) Q4 2023 earnings summary

Executive summary

• 4Q23 sales rose 11.7% YoY to R$5.9bn; FY23 sales increased 11.2% to R$18.9bn.

• FY23 adjusted net revenue grew 14.7% to R$1.2bn and adjusted EBITDA rose 28.8% to R$919.7m.

• December occupancy reached 95.1%; retail operations achieved 4Q23 breakeven.

Financial highlights

• 4Q23 gross revenue rose 8.8% to R$382.1m; adjusted net revenue increased 8.7% to R$330.6m.

• Adjusted EBITDA was R$263.9m in 4Q23, up 29.4%, with a 79.8% margin; FY23 reached R$919.7m, up 28.8%, with a 75.0% margin.

• Adjusted net income rose 9.5% to R$134.6m in 4Q23 and 47.3% to R$388.4m for FY23; adjusted FFO grew 9.2% to R$177.9m and 33.3% to R$562.8m.

• Malls gross revenue increased 9.8% YoY to R$335.1m in 4Q23; mall EBITDA margin was 87.6%, up 6.5 p.p. YoY.

• FY23 mall net revenue rose 16.1% to R$1.12bn; EBITDA increased 23.2% to R$933.3m, with an 83.6% margin.

Outlook and guidance

• FY24 guidance: mall net revenue growth of 4–8%, mall EBITDA margin of 82–85%, total EBITDA margin of 75–79%, and cash investment of R$190–230m.

• FY23 mall revenue growth of 16.1% and mall and total EBITDA margins of 83.6% and 75.0% exceeded guidance; retail net revenue grew 2.3%, below guidance.

• FY24 priorities include leasing vacant space, reducing discounts, improving rent collection and cost efficiency, monetizing land, and maintaining retail breakeven.