Q3 2024 Plaza SA Earnings Call Transcript
Key Points
- 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.
- Footfall through urban centers increased by 5.6% year over year, with significant growth in Colombia at 17.7%.
- Tenant sales reached CLP1.2 billion, marking a 10.7% increase year over year, supported by improved consumption conditions in the region.
- EBITDA increased by 7% year over year, with a margin improvement to 78.5%, reflecting efficiency efforts and higher lease revenues.
- The company is expanding its presence in Peru through the acquisition of Falabella Perú S.A.A., aiming to become the second-largest shopping center operator in the country.
- Administrative expenses rose by 37.5% during the third quarter, driven by higher personnel costs, bad debt provisions, and legal expenses.
- Same-store rent growth showed a downshift compared to the previous quarter, attributed to lower inflation levels.
- Net income growth was modest at 1.2% year over year, impacted by higher administrative expenses and exchange rate variations.
- The company faces higher expenses in readjustment units due to the variation of the UF rate, affecting financial results.
- Leverage is expected to increase to around 3.5x net-debt-to-EBITDA following the acquisition of Falabella Perú S.A.A., up from the current 2.2x.
Good day, everyone, and welcome to Mallplaza third-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
Now I will pass the call over to Derek Tang. Please go ahead.
Greetings, and welcome to Mallplaza earnings conference call. Thank you for joining us this morning. I'm here today with Fernando de Pena, our CEO and the only Latin American member of the Board of Trustees of the ICSC. Also with us is the Investor Relations team represented by (inaudible) [Jaime Martinez Izquierda].
We are pleased to introduce the company's earnings results for the third quarter of 2024. First, we'll begin with a brief overview of the company's quarterly results. Second, we will highlight some strategic remarks regarding the quarter. And as usual, we will end with a Q&A session.
The third quarter of 2024 was marked by exceptional results, which was demonstrated by an increase in the number of visitors, tenant
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