Parque Arauco (PARAUCO) Q3 2024 earnings summary

Executive summary

• Achieved strong growth in sales, revenues, and EBITDA across Chile, Peru, and Colombia, with EBITDA up 20.4% year-over-year and revenue increases of 10.6% in Chile, 7% in Peru, and 38.1% in Colombia.

• Operates 57 multi-format real estate assets across Chile, Peru, and Colombia, with 1,183,500 sqm of GLA and 96.4% occupancy as of September 30, 2024.

• Announced acquisition of Open Plaza Kennedy for ~$200 million, expanding prime Santiago GLA and expected to close in 2Q25.

• Maintained a sound balance sheet with net debt to EBITDA at 4.9x, the lowest in five years, aided by asset sales and strong cash flow.

• Published the second TCFD Climate Management Report and received multiple Institutional Investor awards, reinforcing sustainability and leadership.

Financial highlights

• 3Q24 sales reached USD $776M, up 16% year-over-year; revenues were USD $82M, EBITDA USD $59M, and FFO USD $48M, all showing double-digit growth compared to 3Q23.

• Revenues rose 18%: Chile +11%, Peru +14.6%, Colombia +47.9%; EBITDA margin improved from 70.5% to 71.7% year-over-year.

• FFO grew 20%, with adjusted FFO down 1% due to a one-time inflation-linked UF impact in Chile.

• Net profit margin at 25% LTM 3Q24; occupancy consistently above 94%.

• Net profit attributable to equity holders: Ch$20,773M (-19.1% YoY); consolidated net profit: Ch$27,938M (-8.0% YoY).

Outlook and guidance

• Parque La Molina in Lima set to open in December, 90% leased, expected to add significant value in 2025.

• CapEx strategy targets ~$200 million/year, with a temporary increase in 2025 for Open Plaza Kennedy acquisition; future investments paused until leverage returns to 5x–5.5x.

• CAPEX deployment of US$480M planned over the next years, with major openings scheduled through 2028.

• Growth strategy focuses on asset expansions, new shopping centers, and multifamily projects.