The results are mainly explained by the increase in the gross leasable area by more than 20,000 square meters and by its high occupancy rate of 98.3%. The holding company 's real estate subsidiary is embarking on a process of expanding its shopping centers in Chile and Peru.
Cencosud's shopping center division, Cencosud Shopping, recorded good financial and operational performance in the first quarter of the year. Its net profit in the first three months of 2024 reached US$64,121 million, that is, 82.1% compared to the same period of the previous year, a figure that reaches 23.8% if the effect of asset revaluation is excluded. .
In addition, the company's revenue increased 8.4% during the first three months of the year, reaching US$ 86,422 million, while adjusted Ebitda increased 6.8%, totaling US$ 77,232 million.
These positive results are mainly explained by the increase in its GLA (gross leasable area) by more than 20,000 square meters and, at the same time, maintaining one of the highest occupancy rates in the industry, with 98.3%.
In this regard, Sebastián Bellocchio, general manager of Cencosud Shopping , indicated that “we have started the year in a very positive way, being able to capitalize on the interest of tenants through a significant increase in our GLA and maintaining our high occupancy rate. In the following months the focus will be on continuing to lead the industry through innovation, efficiency, the generation of spaces and experiences for a better world.”
During the period, the company's leverage level stood out, which is among the lowest in the market, with a net leverage of 1.8 times.
Traffic in its malls continues to grow and tenants recorded increases in sales of 6.2%, which stands out especially in a challenging economic and consumer context throughout the region.
In a telematic conference, Cencosud Shopping authorities stressed that visits increased 8.9% in the first quarter compared to the same period of the previous year due to improvements in both Peru and Chile.
In the case of Chile, there was an increase in visits by almost two million people year-on-year, highlighting Cenco Costanera, Cenco Osorno, Cenco Ñuñoa and Cenco Temuco, as a result of their expansions and remodeling during 2023. In Peru, visits increased 79.0% year-on-year (more than 500,000 people) explained mainly by the opening of the first stage of Cenco La Molina, in the wealthy Lima neighborhood of the same name
On the other hand, this increase in visits to shopping centers allowed improving the performance of complementary businesses such as Sky Costanera, the highest viewpoint in South America located in the Gran Torre Costanera in Santiago, Chile. This is explained by the recovery of tourism, especially in Chile and Peru. In addition, during the first quarter, he highlighted the reinvigoration of the corporate office marketing strategy, adapting spaces to the needs that tenants are currently demanding.
INVESTMENT PLAN 2023-2027
In relation to the progress of the investment plan, in January the company began work on the second stage of Cenco La Molina, in Peru, which seeks to become the largest shopping center in the district in the coming years, with more than 40,000 meters. surface squares.
"Today we are starting the second stage. The first stage is 95% commercialized. We hope to have more than 70 stores open by the end of September. The truth is that we are making good progress and good news in the La Molina district," added Bellochio.
Also, in Chile, the strategic renovation of the fifth level of the Cenco Costanera mall , which will allow the shopping center to expand its gastronomic offering. Likewise, the remodeling of the food court at Cenco Florida, which incorporates a design of high aesthetic and gastronomic standards to improve the customer experience. And with the aim of boosting the occupancy of the offices in the Costanera and Vitacura Towers, semi-equipped spaces were created that allow tenants to personalize their workplaces.
“We will continue working to finalize the company's investment plan, at the same time we will seek to be a contribution to the development of communities, offering safe spaces with a great value proposition, in addition to meeting the needs of our tenants and clients” , concluded Sebastián Bellocchio.
