Parque Arauco (PARAUCO) Q2 2026 earnings summary

Executive summary

• Revenue grew 17.9% year-over-year to CLP 104 billion, and EBITDA rose 15.8% to CLP 75 billion, with an adjusted EBITDA margin of 77.6%, the highest for a second quarter in company history.

• Growth was driven by integration of new assets, efficient commercial management, and organic portfolio expansion.

• Net income attributable to controlling interest fell 30.8% year-over-year to CLP 18,353 million, impacted by higher indexed asset/liability expenses and increased financial costs.

• Completed a capital increase, raising CLP 274 billion (~$300 million), strengthening the balance sheet and reducing net debt-to-EBITDA to 4.5x.

• Recognized for sustainability, selected for Dow Jones Best-in-Class Chile and MILA 2026 indices.

Financial highlights

• Tenant sales rose 12.6% year-over-year to CLP 920,727 million, with Peru and Colombia showing standout growth.

• EBITDA by country: Chile +8.2%, Peru +21.9%, Colombia +28.1% year-over-year.

• Adjusted EBITDA margin reached 77.6%, up from 76% last year.

• FFO increased 10.5% to CLP 57 billion; net income attributable to controlling interest fell 30.8% due to inflation-driven liability adjustments.

• Financial expenses rose 28.5% due to higher debt and interest rates, especially in Colombia.

Outlook and guidance

• The investment pipeline reached a record US$1,137 million, with major projects in Chile, Peru, and Colombia, including new shopping centers, expansions, and multifamily developments.

• GLA is expected to increase by 16.9% (227,130 sqm) in coming years, with projects like Arauco Chicureo and Mall Paseo Quilín underway.

• Continued focus on brownfield expansions, new malls (mainly via M&A), and multi-family projects, with gradual announcements of new investments.

• Ongoing consolidation trend in core markets, with further M&A activity anticipated but timing uncertain due to market illiquidity.

• Management highlighted flexibility to continue executing the growth plan, supported by strong liquidity and leverage below target levels.