In This Article:
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Revenue: CLP119.5 billion, an increase of 8.3% year over year.
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EBITDA: CLP93.8 billion, a 7% increase year over year.
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EBITDA Margin: 78.5%, a 2.4 percentage point increase compared to the first part of the year.
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Net Income: CLP60 billion, a 1.2% increase year over year.
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Adjusted FFO: Increased 14.5% year over year.
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Adjusted FFO Margin: 65.1%, an increase of 3.5 percentage points year over year.
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Same-Store Sales: Increased 3.9% during the third quarter.
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Occupancy Rate: 96.4%, a 1.1 percentage point increase compared to 2023.
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Footfall: 74 million visitors, a 5.6% increase compared to the third quarter of 2023.
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Tenant Sales: CLP1.2 billion, a 10.7% increase year over year.
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Cost of Sales: CLP13.2 billion, a 3.7% decrease year over year.
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Administrative Expenses: Increased 37.5% during the third quarter, reaching CLP13 billion.
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Net Financial Debt-to-EBITDA Ratio: 2.2 times.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Plaza SA (XSGO:MALLPLAZA) achieved the highest occupancy rate in the last five years at 96.4%, driven by strong demand for spaces and new openings.
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Footfall through urban centers increased by 5.6% year over year, with significant growth in Colombia at 17.7%.
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Tenant sales reached CLP1.2 billion, marking a 10.7% increase year over year, supported by improved consumption conditions in the region.
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EBITDA increased by 7% year over year, with a margin improvement to 78.5%, reflecting efficiency efforts and higher lease revenues.
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The company is expanding its presence in Peru through the acquisition of Falabella Peru S.A.A., aiming to become the second-largest shopping center operator in the country.
Negative Points
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Administrative expenses rose by 37.5% during the third quarter, driven by higher personnel costs, bad debt provisions, and legal expenses.
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Same-store rent growth showed a downshift compared to the previous quarter, attributed to lower inflation levels.
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Net income growth was modest at 1.2% year over year, impacted by higher administrative expenses and exchange rate variations.
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The company faces higher expenses in readjustment units due to the variation of the UF rate, affecting financial results.
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Leverage is expected to increase to around 3.5x net-debt-to-EBITDA following the acquisition of Falabella Peru S.A.A., up from the current 2.2x.
Q & A Highlights
Q: We noticed a downshift in same-store rent growth from 7% in 2Q to 5.6% in 3Q. Is this temporary, and what might be causing it? Also, could you provide some color on the acquisition process of Falabella's Peru mall portfolio? A: The downshift in same-store rent is partly due to lower inflation levels. In Peru, we have the lowest occupancy costs, which decreased by 60 basis points to 9%, and the lowest occupancy rate, which increased by 2.5 percentage points. We are at the highest occupancy rate in five years, which should help drive rent growth. Regarding the acquisition, the local regulators have a favorable view, and we expect to conclude the process by year-end. We are assessing opportunities for expansion, with plans for 100,000 square meters of GLA in Peru and 125,000 square meters in Chile over five years.