Parque Arauco (PARAUCO) Q2 2025 earnings summary

Executive summary

• Net income attributable to equity holders grew 41% year-over-year, driven by strong operational and non-operational performance, new asset acquisitions, and robust results across Chile, Peru, and Colombia.

• EBITDA rose 18.2% year-over-year, with Chile leading at 24% growth, Peru at 20.8%, and Colombia at 2.3%, supported by asset expansions and contract renewals above inflation.

• Operates 58 multi-format retail real estate assets with 1,269,000 sqm of GLA and 96.4% occupancy as of June 30, 2025.

• Major milestones included the acquisition of Parque Arauco Kennedy east building, Minka in Peru, and the launch of the first multifamily building in Colombia.

• Investment grade ratings were reaffirmed, and the company was recognized for sustainability leadership in Chile.

Financial highlights

• Revenues increased 16.4% year-over-year to Ch$88,331M; EBITDA reached Ch$64,548M (+18.2% YoY); FFO grew 13.6% to Ch$51,356M.

• Net profit attributable to equity holders was Ch$26,534M (+41.0% YoY); consolidated net profit was Ch$34,602M (+38.2% YoY).

• EBITDA margin improved to 77%, up 220 bps year-over-year; FFO margin at 58%.

• Occupancy rate reached a record 96.4% portfolio-wide.

• Net financial debt/EBITDA was 5.3x at quarter-end, within target range.

Outlook and guidance

• Investment pipeline totals USD $765M, representing 22% of total investment property value, with a 13% increase in GLA expected by end-2025.

• 73,000 sqm of new space to open in 2025, mainly from the Minka acquisition in Peru.

• Net financial debt to EBITDA expected to remain below 6x after Minka acquisition, with a target range of 5x-6x.

• Continued focus on sustainable growth, with decarbonization targets approved by SBTi and ongoing multifamily project development.