Parque Arauco (PARAUCO) Q4 2025 earnings summary

Executive summary

• Achieved record growth in 2025 with over $400 million in investments, major acquisitions in Chile and Peru, and strong operational performance across Chile, Peru, and Colombia.

• Developer and operator of 59 multi-format retail assets totaling 1,337,500 sqm GLA as of December 31, 2025, with a 95.7% occupancy rate.

• Portfolio includes regional malls, neighborhood centers, strip centers, outlets, and multifamily projects, with a focus on growth, diversification, and sustainability.

• Issued $150 million in bonds in Chile and Peru, including the sector's first green bond, reflecting strong market confidence.

• Proposed a $330 million capital increase to support future growth, pending shareholder approval.

Financial highlights

• 2025 revenues reached USD $402M (CLP $384bn), up 21.2% year-over-year; EBITDA was USD $285M (CLP $272bn), up 19.5%.

• Net income rose 43% for the year, with net profit margin at 51%.

• Consolidated sales grew 16.4% for the year, with double-digit growth in Chile (15.9%), Peru (18.1%), and Colombia (15.1%).

• FFO grew 16.3% and adjusted FFO rose 31.2% compared to 2024.

• GLA increased by 7.6% in 2025, with 101,930 sqm added.

Outlook and guidance

• Management projects continued optimism for 2026, expecting EBITDA margins above 74% and high single-digit revenue growth.

• Investment pipeline totals USD $731M, with major projects in expansions, new malls, and multifamily developments across all countries.

• Forecasted GLA to reach 1,439,430 sqm with ongoing and upcoming projects.

• Growth strategy focuses on expanding main assets, selective M&A, and new multi-family projects.

• Updated investment plan to be announced in the first half of 2026.