Parque Arauco (PARAUCO) Q1 2025 earnings summary

Executive summary

• Consolidated revenues grew 13.6%–14% year-over-year, with EBITDA up 16%–16.3% and FFO up 22%–22.3%, reflecting strong portfolio performance and new openings across Chile, Peru, and Colombia.

• Operates 58 multi-format real estate assets with 1,199,500 sqm of GLA and 96.4% occupancy as of March 31, 2025.

• Growth was driven by standout assets such as Parque Arauco Kennedy, premium outlets in Chile, MegaPlaza Independencia in Lima, Parque Fabricato in Colombia, and new openings like Parque La Molina.

• Major acquisitions include Open Plaza Kennedy (US$173M) and Minka Shopping Center (US$104M), plus a new greenfield project, Arauco Premium Outlet Buin (US$24M).

• Strategic focus on growth, profitability, customer experience, and sustainability, supported by a robust investment pipeline and multifamily expansion.

Financial highlights

• 1Q25 revenues reached US$86M (CLP 326.7bn), up 11.8%–13.6% year-over-year; EBITDA was US$61M (CLP 235.9bn), up 13.6%–16.3% year-over-year; FFO was US$50M (CLP 59bn), up 16.3%–22.3% year-over-year.

• Tenant sales for 1Q25 totaled US$794M (CLP 764bn), up 11.8% year-over-year.

• EBITDA margin improved to 70.8%–72%, with occupancy consistently above 94% over the last decade.

• Cost of sales rose 9%, below revenue growth, due to efficiency initiatives.

• Financial expenses decreased by almost 10% due to debt refinancing and currency shifts.

Outlook and guidance

• Investment pipeline totals US$737M, representing 23% of investment property value, with US$495M remaining to deploy and 20% GLA growth expected.

• 2025 will see 149,000 sqm of new space, mainly from Open Plaza Kennedy and Minka acquisitions.

• Occupancy costs are expected to remain stable, supported by high sales and strong rent negotiations.

• Integration of Open Plaza Kennedy is expected to yield cap rate improvements to 7.5–8% by end of 2026, with limited CapEx required.

• Continued focus on sustainable growth, digital transformation, and ESG leadership.