Allos (ALOS3) Q1 2025 earnings summary

Executive summary

• Total sales reached R$9.1 billion in 1Q25, up 5.0% year-over-year, with strong regional growth and Shopping Leblon leading at +15.8%.

• Net revenue grew 5.3% year-over-year to R$618.4 million, and EBITDA increased 5.0% to R$443.3 million, with SG&A growth below inflation.

• FFO reached R$275 million, up 3.8% year-over-year, and FFO per share rose 13.2% due to share buybacks.

• Occupancy rate improved to 96.8%, with 137 new contracts signed and strong leasing demand; delinquency dropped to 2.5%.

• Dividends and IOE of R$153 million distributed in 1Q25, with another R$153 million approved for 2Q25.

Financial highlights

• Net operating income (NOI) grew 4.5% year-over-year to R$547.4 million, with a margin of 93.1%.

• Net income surged 286.8% year-over-year to R$254.7 million, with a margin of 40.4%.

• Media revenue rose 9.5% to R$36 million, now 5.4% of gross revenue.

• Occupancy cost at 11.2% of sales; rent expenses 6.7%.

• Net delinquency improved to 2.5%, down 110 bps year-over-year.

Outlook and guidance

• Annual EBITDA guidance maintained at R$2,070–2,150 million, factoring in economic slowdown and seasonality.

• April 2025 preview: total sales up 16.4%, SSS up 12.4%, SSR up 9.0%, and rental revenues up 9.0% compared to April 2024.

• Lease growth, cost discipline, and strong demand for space underpin positive outlook.

• No changes to guidance anticipated unless significant adverse trends emerge.