The real estate company also reported a 16.0% increase in tenant sales compared to the same period in 2023 and a new historical high in occupancy of its assets, reaching 96.4%.
Chilean real estate company Parque Arauco reported significant increases in its third quarter 2024 results, both in EBITDA and revenues, mainly explained by the good performance of most of its shopping centers, in addition to the entry of new assets in Colombia during the fourth quarter of 2023.
In terms of both revenue and EBITDA, the company reported significant increases of 18.5% and 20.4% respectively, compared to the same period in 2023, mainly explained by the solid performance of most of its assets and the incorporation of new shopping centers in Colombia in the last quarter of 2023.
By country, EBITDA grew 16.3% in Chile, 10.2% in Peru and 49.2% in Colombia. Revenues reached $76,239 million (US$80.5 million), showing increases of 11.3% in Chile, 14.6% in Peru and 47.9% in Colombia.
Additionally, Parque Arauco reported an occupancy level of 96.4%, exceeding the 96.1% of the third quarter of the previous year.
Sales increased by 16.0% to total $718,074 million (US$ 758 million) in the period and net financial debt/EBITDA reached its lowest level in more than five years, standing at 4.9x.
According to the company, these achievements are mainly explained by solid operating results and a rigorous CAPEX planning process, which has allowed it to strengthen its balance sheet to responsibly absorb the potential materialization of the acquisition of Open Plaza Kennedy for close to US$ 200 million.
Francisco Moyano, Corporate Manager of Administration and Finance at Parque Arauco, said that “our results continue to show robust performance, in line with the positive performance of some of our most important assets, such as Parque Arauco Kennedy and Arauco Outlets in Chile and Peru, which grew double-digit sales.”
He also highlighted the reduction of the company's current leverage ratio to 4.9x, "as a result of detailed financial planning and the growth of our EBITDA. Furthermore, this leverage ratio will be favored by the recent sale of our shares in our Outlets in Chile.
This planning allows us to continue growing with new investments, such as the already announced acquisition of Open Plaza Kennedy, while maintaining our conservative strategy in managing the balance sheet.”
MILESTONES BY COUNTRY
In Chile, sales stood out with double-digit growth. In particular, Parque Arauco Kennedy grew 14.8%, benefiting, among other factors, from the consolidation of the area of influence, the asset's better connectivity and the increased tourism seen in the southern country.
Arauco Chillán recorded good results in revenue and sales in the period, which grew by 26.0% and 5.9%, respectively.
This is mainly explained by the process of converting spaces originally intended for anchor stores into smaller stores, which resulted in the entry of new tenants.
Finally, Arauco Premium Outlets continues to show outstanding performance with sales growth of 19.2%.
The format in general showed an increase in this metric driven by the greater flow of tourists who have visited the country and the incorporation of new stores.
In Peru, MegaPlaza Independencia increased its sales by 8.2%, despite the current interventions resulting from the implementation of its Master Plan. Likewise, MegaPlaza Chimbote had a 15.0% increase in its sales.
Finally, and in line with its brand renewal plan in the country, the company announced a new change in shopping centers in its portfolio, welcoming Parque Pisco, Parque Cañete and Parque Chincha, which was accompanied by improvement works on the assets.
In Colombia, Parque Alegra increased its sales by 9.8% in line with its growing consolidation, while Parque Caracolí grew by 10.9% in this indicator, following the entry of H&M, Starbucks and other tenants.
Additionally, the incorporation during the last period of 2023 of Parque Fabricato and Titán Plaza, assets that represent approximately 21.0% of the portfolio's net income in that country and approximately 18.0% of sales, contribute to the positive results of this period.
Meanwhile, Outlet Arauco Sopó increased its occupancy to 86.8% compared to 80.0% in the same quarter of the previous year, and revenues increased 18.3% compared to the same period.
Finally, during the quarter under review, the company recorded milestones in its growth avenue.
The recent expansions in Arauco Chillán, Arauco Coronel and MegaPlaza Ica, in addition to the upcoming opening of Parque La Molina in Peru in the last quarter of this year, which will be its 21st shopping center in that country.
This asset is already at an advanced level of commercialization and will present a lifestyle proposal with more than 60 commercial premises, 3 anchor stores and various gastronomic options.
