The Company also reported a significant 24.8% increase in revenue, confirming an upward trend in its business.
Parque Arauco, a Chilean real estate company, reported significant growth in its results for the second quarter of 2024, both in EBITDA and income, mainly explained by the good performance of most of its shopping centers, added to the entry of new assets in Colombia in the fourth quarter of 2023, Parque Fabricato and Titán Plaza.
The company reported an increase in its EBITDA by 25.3% compared to the same period in 2023, reaching $54,626 million (US$ 57.4 million). Meanwhile, its revenues rose 24.8% in the quarter, equivalent to $75,856 million (US$ 79.7 million).
As for sales, they increased 19.2% to total $722,830 million (US$760 million) in the second quarter. Additionally, it also showed record levels in its occupancy rate, with 96.1% at a consolidated level, versus 95.8% in the same period of the previous year.
As at the beginning of this year, the strength in the group's operational results can also be seen in its Funds Generated from Operations (FFO), which, together with the adjusted FFO, grew 19.4% ($45,203 million or US$ 47 .5 million) and 18.4%, respectively, in line with the positive operating results of the Company and its related companies.
Francisco Moyano, Corporate Manager of Administration and Finance of Parque Arauco, pointed out that “the strength of our results is explained thanks to the solid growth strategy that we have promoted through the expansion and reconversion of our assets, new projects and the diversification of the briefcase.
During the period, the performance of iconic assets such as Parque Arauco Kennedy in Chile and Larcomar in Peru stands out, whose sales grew by double digits, as well as the Outlets format in Chile, which together presented a relevant growth in sales and income.
All of this is aligned with efficient cost and expense management, within which we have been working in detail since 2023, with different initiatives.”
In the case of Parque Arauco Kennedy, we see a significant growth of 16.5% in sales, driven by a greater flow of customers, as a result of improvements in its connectivity; as well as the rebound in tourism in the southern country.
All these factors, added to the new phase of expansion of the asset, which considers the first multifamily building within a shopping center in Chile, (USD60 million investment), make us look optimistically at the future for one of its most iconic malls.
The company's Outlets format in Chile also stood out in the period, growing 23.4% in sales, mainly driven by Arauco Premium Outlet Buenaventura and Curauma, which rose 31.5% and 43.6% respectively.
In Parque Arauco, Larcomar's great quarter in Peru also stands out, where the reconversion work carried out in 2023 contributed to a sales growth of 19.9%.
This is an example of the high value in results generated by the investments that have been promoted to improve the customer experience, strengthening the commercial mix through the arrival of H&M, the opening of the cinema and the Salazar food hall .
In this country, the brand change from Parque Lambramani to Outlet Arauco Arequipa also stood out, which, after its renewed value proposition, has increased its EBITDA by 82.0% compared to the second quarter of 2023.
This process considered an improvement of the façade and common areas, with a renewed value proposition of low prices.
In Colombia, the Company highlighted the entry of Parque Fabricato and Titán Plaza, strengthening its growth process in the country, where these assets began to represent approximately 21% of the portfolio's net income and 19% of sales.
Along the same lines, Parque Arauco announced a few weeks ago an agreement to complete 100% ownership of Parque Alegra, in Barranquilla, which will allow it to continue promoting its maturation process, with sales that grew by 13.5%. .
As part of this regional growth strategy, during the second quarter of this year, the company announced investments of US$ 75 million, considering the announcement of multifamily in Parque Arauco Kennedy at US$ 60 million and the investment of US$ 15 million for complete 100% of the property in Parque Alegra.
