Parque Arauco (PARAUCO) Q3 2025 earnings summary

Executive summary

• Operates 59 multi-format retail real estate assets across Chile, Peru, and Colombia, with 1,333,000 sqm of GLA and 95.6% occupancy as of Q3 2025.

• Achieved strong growth across all main financial indicators in Q3 2025, with occupancy at 95.6% and tenant sales up 20.2% year-over-year.

• Revenues increased 24.9% year-over-year, EBITDA rose 26.1%, FFO up 14.8%, and net profit for shareholders grew 28.2% compared to Q3 2024.

• Growth driven by both organic performance and new acquisitions, notably Parque Arauco Kennedy East in Chile and Minka in Peru.

• Issued the first green bond in South America's retail real estate sector, raising $70 million for sustainable projects.

Financial highlights

• Adjusted EBITDA margin reached 76.1%, the highest in recent years, reflecting cost reviews and zero-based budgeting.

• Consolidated revenues reached Ch$95,199 million (+24.9% YoY); EBITDA was Ch$68,948 million (+26.1% YoY).

• Net financial debt to EBITDA leverage closed at 5.6x, maintaining balance sheet strength despite acquisitions.

• FFO margin at 55%, net margin at 29% for LTM 3Q25.

• Gross debt CLP 1,696bn, net debt CLP 1,449bn, cash position CLP 247bn as of September 30, 2025.

Outlook and guidance

• Investment pipeline totals $758 million, with $163 million in remaining committed investments and major projects in Chile and Peru.

• Forecasted GLA to increase by 109,630 sqm (+8.2%) through 2026, with new retail and multifamily assets coming online.

• Expect continued strong performance in Colombia, with robust sales and rent growth anticipated for Q4 2025.

• Peru expected to recover in Q4 as major asset expansions conclude and festive season boosts sales.

• Efficiency initiatives and economies of scale expected to drive further margin improvements over the next two years.