Iguatemi (IGTI3) Q2 2026 earnings summary

Executive summary

• Total sales reached R$6.6 billion in 2Q26, up 4.6% year-over-year, despite headwinds from the FIFA World Cup and calendar effects.

• Sales per square meter grew over 13%, reflecting capital allocation to higher productivity assets, while same-area sales rose 4.2% and same-store sales 1.7%.

• Occupancy rate improved to 96.9%, with strong demand from international brands and successful new store openings, including H&M, Zara, Dior, and Birkenstock.

• Portfolio repositioning continued, with increased stakes in strategic malls, divestment from less productive assets, and capital recycling in 10 assets.

• ESG initiatives advanced, including 100% renewable energy use, high waste reuse, strong female leadership, and publication of the fourth sustainability report.

Financial highlights

• Adjusted net revenue rose 11.6% year-over-year to R$445.4 million, with recurring adjusted net profit up 22.1% and adjusted EBITDA up 10.8% to R$290.6 million.

• NOI margin reached a record 95%, driven by high-performing malls and near-zero default rates.

• FFO increased 22% year-over-year on a recurring basis, but reported FFO and net profit declined due to non-recurring items.

• Sales for the first six months totaled R$12.2 billion, up 8.2% year-over-year.

• Retail segment same-store sales grew 15% in Q2, with total retail sales up 25.8%.

Outlook and guidance

• CapEx for 2026 will be below the initial BRL 450–460 million guidance due to project delays, with multiple development projects underway and new openings expected through 2Q28.

• Leverage will be maintained at 1.6x–1.8x, with no major changes in capital allocation strategy.

• Dividend payout of R$200 million and a buyback program remain in place, with payout policy to be reviewed in 2027.

• Expansion projects in São Paulo and Brasília progressing, with high pre-leasing rates and strong demand from international brands.

• Management notes that projections depend on market conditions, regulatory changes, and economic performance.