Plaza (MALLPLAZA) Q2 2024 earnings summary

Executive summary

• Operates 26 urban centers across Chile, Colombia, and Peru, with 2 million sqm of GLA and 292 million annual visitors as of June 2024.

• Achieved solid operational results in Q2 2024, with increases in visitors, tenant sales, and occupancy, and opened Mallplaza Cali in Colombia, two IKEA stores, and several H&M stores regionally.

• Focus on experience-driven tenant mix, omnichannel strategy, and ESG initiatives for sustainable growth.

• Portfolio includes 10 Tier A assets, with over 60% of EBITDA from these high-productivity malls.

• Opened 134 stores in 2Q24, totaling 331 new stores in 2024, enhancing the commercial mix and regional presence.

Financial highlights

• LTM revenues as of June 2024 reached $478M, up 14% year-over-year; 2Q24 revenues were CLP 120.4 billion, up 17% year-over-year.

• EBITDA for the same period was $367M, up 16%, with a margin of 77%; 2Q24 EBITDA was CLP 91.7 billion, up 16.3%, with a margin of 76.1%.

• Net income for 2Q24 was CLP 121 billion, down 27.6% year-over-year, mainly due to lower fair value variation of investment properties and higher tax expenses; LTM net income rose 26% to $335M.

• Adjusted FFO for 2Q24 was CLP 71 billion, up 9.7% year-over-year, with a margin of 57.4%; LTM adjusted FFO was $289M, up 12%.

• Footfall reached 73 million in 2Q24, up 7% year-over-year; tenant sales totaled CLP 1.3 trillion, up 8.8%.

Outlook and guidance

• Growth strategy includes greenfield, brownfield, and M&A, with a focus on Peru and Colombia for expansion.

• Plans to add 100,000 m² GLA in Peru and 125,000 m² in Chile over five years, with major projects like Mallplaza Vespucio lifestyle project opening by end of 2024.

• Acquisition of Falabella Perú expected to close in 2H24, positioning as the second-largest operator in Peru and increasing geographic diversification.

• Market outlook in the Andean region remains positive, with normalization of inflation and interest rates.

• Continued focus on omnichannel initiatives, digitalization, and ESG leadership to drive future growth.