Parque Arauco (PARAUCO) Q1 2026 earnings summary

Executive summary

• Achieved strong operational and financial momentum in Q1 2026, with revenue up 20.2% and EBITDA up 20.5% year-over-year, driven by new asset integration and organic growth.

• Largest independent operator of multi-format retail real estate in the Andean region, with 59 assets and over 1.3 million sqm of GLA across Chile, Peru, and Colombia.

• Net income attributable to controlling interest rose 67.7% year-over-year; FFO increased 12%, with adjusted FFO up 58.4%.

• Initiated a capital increase of CLP 285 billion (~US$330 million) to support a US$1.03 billion investment plan, including six new projects.

• Recognized for sustainability leadership by S&P Global and Merco ESG rankings.

Financial highlights

• Revenue grew 20.2% year-over-year to Ch$99,508M; EBITDA up 20.5% to Ch$70,624M; EBITDA margin improved to 75.9%.

• Net income attributable to controlling interest up 67.7% year-over-year; net profit reached Ch$41,102M (+55.1% YoY).

• Tenant sales rose 15.5% overall, with country-specific increases: Chile 8.9%, Peru 27.3%, Colombia 16.1%.

• FFO increased 12%, with adjusted FFO up 58.4%; FFO margin at 53.7%.

• Net financial debt/EBITDA at 5.0x; cash and cash equivalents at Ch$226,752M (+48.1% YoY).

Outlook and guidance

• Capital increase to fund US$1.03 billion investment pipeline, targeting annual CapEx of US$300 million and 196,130 sqm of GLA additions.

• Targeting ~350,000 sqm of GLA expansion by 2030, focusing on flagship asset expansions, new shopping centers, and multifamily projects.

• Maintaining investment-grade metrics and target leverage (NFD/EBITDA 5.0–6.0x) while executing growth.

• Expect continued growth in non-rental revenues, especially from parking and retail media.

• Leasing spreads in Chile expected to grow at inflation plus 2%, with occupancy costs stable per category.