In This Article:
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EBITDA Growth: 20.4% increase across all three countries.
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Revenue Growth: Chile 10.6%, Peru 7%, Colombia 38.1%.
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Sales Increase: Overall 16%; Chile 9.5%, Peru 19.3%, Colombia 33.7%.
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Same Area Sales Growth: Chile 8.1%, Peru 10.4%, Colombia around 0%.
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Occupancy Rate: Consolidated occupancy at 96.4%.
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EBITDA Margin: Increased from 70.5% to 71.7%.
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Net-Debt-to-EBITDA Ratio: Lowest level in five years at 4.9 times.
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Funds from Operations (FFO): Increased by 20%.
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Acquisition Announcement: Open Plaza Kennedy for $200 million.
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GLA Expansion: Increase from 120,000 to 174,000 square meters in Santiago.
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CapEx Investment: Total investment of about USD700 million planned.
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Parque Arauco SA (XSGO:PARAUCO) reported a strong growth in sales, revenues, and EBITDA, with a 20.4% increase in EBITDA across all three countries.
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The company announced an acquisition agreement for Open Plaza Kennedy, strategically expanding its GLA in Santiago.
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Parque Arauco SA (XSGO:PARAUCO) achieved the lowest level of leverage in the last five years, with a net-debt-to-EBITDA ratio of 4.9 times.
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The company received multiple awards, including Most Honored Company, Best CEO, and Best CFO in the real estate small cap category.
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Parque Arauco SA (XSGO:PARAUCO) published its second TCFD climate management report, demonstrating its commitment to sustainability.
Negative Points
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Colombia's sales levels were flat, attributed to the impact of tax reforms and exchange rate effects.
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The company experienced a decrease in financial income due to lower returns on financial investments.
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There was a significant negative impact from the line of income for indexed assets and liabilities due to changes in inflation in Chile.
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Some malls in Peru saw a decrease in EBITDA due to an increase in bad debt provisions.
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The company noted a decrease in sales at Parque Arboleda and Parque La Colina in Colombia, attributed to increased personal income and import taxes.
Q & A Highlights
Q: How do you see occupancy cost trends in Chile, given that same store rents grew more than same store sales this quarter? A: Eduardo Perez Marchant, CEO, explained that there is still room for increasing occupancy costs in Chile, as they are currently below pre-pandemic levels. Contracts for minor stores, which make up about 15% of GLA, are being renegotiated at inflation plus 1-2% annually. This gradual increase is expected to continue as sales improve.