Allos, Multiplan, and Iguatemi: A Look at the Shopping Mall Sector's progress in the 3Q of 2024

The Big Highlight of the Week Goes to Iguatemi, Which Managed to Reverse Its Net Debt from the Previous Quarter

Cristina Betts, CEO Iguatemi

By: SiiLA News

11/19/2024

With the deadline for publishing management reports for the third quarter of 2024 approaching, three major brazillian shopping mall players have already presented their financial statements: Allos, Multiplan and Iguatemi.

In general, the retail sector showed solid performance, with the largest companies posting positive results despite an uncertain economic environment, rising dollar, and increasing interest rates (Selic).

Iguatemi, which had a net debt in Q2 2024, has been reducing its negative figures, with a 12.7% decrease in its debt this quarter. The current amount is R$ 3.5 million, compared to R$ 4 million in Q2 2024.

Multiplan’s standout performer this quarter was the New York City Center, which posted a 31.0% year-over-year increase in revenue, growing from R$ 2.4 million to R$ 3.2 million. On the other hand, Shopping Vila Olímpia recorded the worst performance in terms of revenue, with a 9.6% decline.

Allos, the largest shopping mall network, highlighted its sales performance by region. The Southern region of Brazil showed an 11% growth compared to Q3 2023. Sales in Q3 2024 reached R$ 1,862/m², an increase of 9.2%. Additionally, the occupancy rate of its portfolio rose by 0.1% compared to Q2 2024, totaling 96.4%.

Below are further highlights from the companies:

IGTA3 (Iguatemi)

Iguatemi published its financial results a week ago. Noteworthy highlights include the 16.3% growth in adjusted net income, which reached R$ 118.5 million, compared to R$ 101.9 million in Q3 2023.

EBITDA stood at R$ 227.4 million, an increase of 7.7% over Q3 2023. Additionally, total sales grew by 9.7%, reaching R$ 4.9 billion, compared to the same period last year.

MULT3 (Multiplan)

Shopping mall operator Multiplan reported its Q3 2024 financial results. The company recorded net income of R$ 279.6 million, up 6.1% from the same period in 2023.

EBITDA (earnings before interest, taxes, depreciation, and amortization) was R$ 401.1 million, reflecting a 2.6% increase year-over-year. However, the EBITDA margin showed a slight decline, dropping from 76.4% in Q3 2023 to 73.6% in Q3 2024.

Net revenue also saw a positive result, totaling R$ 545.1 million, a 6.5% increase compared to Q3 2023. The company’s main revenue sources continue to be rental income and parking fees.

ALOS3 (Allos)

Shopping mall administrator Allos also released its Q3 2024 report. The group posted net income of R$ 112.77 million, reversing a loss of R$ 16.61 million reported in the previous quarter.

Adjusted EBITDA reached R$ 468 million, reflecting a 9.8% increase compared to the same period last year.

The company’s Funds From Operations (FFO), which excludes depreciation, amortization, and non-cash effects, totaled R$ 307.2 million in Q3 2024, up 27.7% year-over-year, with the margin improving by 7.2 percentage points to 47.8%. Net revenue reached R$ 650 million, an 8.5% increase compared to Q3 2023.

Additionally, Allos posted net income of R$ 105.28 million, consolidating the reversal of a loss of R$ 10.57 million recorded in Q3 2023. EBITDA reached R$ 467.97 million, reflecting a 6.6% annual increase, with the margin at 72.8%. Adjusted net revenue grew by 8.5% year-over-year, totaling R$ 642.97 million.

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