Parque Arauco (PARAUCO) Q4 2024 earnings summary

Executive summary

• Achieved significant milestones in growth, profitability, client experience, and sustainability pillars in 2024, operating 58 multi-format assets across Chile, Peru, and Colombia with 1.2 million sqm of GLA and 96.2% occupancy.

• 2024 tenant sales reached CLP 3,081 billion (+16.7% YoY), revenues CLP 316,776 million (+19.8% YoY), EBITDA CLP 227,727 million (+21.0% YoY), and FFO CLP 182,627 million (+18.5% YoY).

• Expanded portfolio with acquisition of Open Plaza Kennedy, inauguration of Parque La Molina in Peru, and launch of multifamily projects.

• Portfolio includes iconic assets in each country, with over 60% of NOI generated by six flagship properties.

• Advanced sustainability initiatives, achieving 97th percentile in Dow Jones Sustainability Index and SBTi approval.

Financial highlights

• Tenant sales grew 16.7% year-over-year, with Chile up 10.5%, Peru 17.9%, and Colombia 36.4%.

• Revenues increased 19.8% year-over-year to CLP 316,776 million; EBITDA rose 21% to CLP 227,727 million, with margin improving to 71.9% in 2024 and 74.1% in Q4.

• Net profit increased 15.8% year-over-year to MCh$149,542.

• FFO grew 18.5% year-over-year, with a 10-year CAGR of 11%.

• Occupancy rate stable at 96.2% in 2024.

Outlook and guidance

• Expect continued positive consumption trends in Chile for 2025, supported by stable domestic demand and tourism.

• CAPEX deployment of US$500 million planned for 2025–2028, with higher investment in 2025 for Open Plaza Kennedy acquisition.

• Pipeline includes major expansions in Chile and Peru, new shopping centers in Peru and Colombia, and multifamily developments.

• Leasing spreads expected to grow at inflation plus 1%-2% CAGR due to strong tenant sales and step-up contracts.

• Pause on new investment announcements until leverage returns to optimal 5x-5.5x range.