Allos (ALOS3) Q2 2024 earnings summary

Executive summary

• Strong operational and financial performance in Q2 2024, with total sales of R$9.4 billion, up 5.8% year-over-year, driven by portfolio optimization, organic growth, and successful asset recycling.

• Net revenue reached R$622 million, a 3.8% increase, supported by 25% growth in media and 14.2% in parking revenues.

• FFO grew 41.1% year-over-year to R$312.1 million, with FFO per share up 41% due to share buybacks.

• Occupancy rate remained high at 96.3%, with 191 new contracts signed and about 28,000 sqm GLA commercialized.

• Integration of merged entities progressing, with ongoing realization of synergies and operational efficiencies.

Financial highlights

• NOI increased 4.4% to R$547.7 million, with margin at 92.0%.

• Adjusted EBITDA was R$442.4 million (+1.9% YoY), margin at 71.2%.

• FFO margin improved to 50.2% (+11.1 p.p. YoY); net income reached R$326.1 million, margin 52.0%.

• Shareholder returns totaled R$1.1 billion YTD, including R$602 million in dividends and significant share repurchases.

• Cash position at quarter-end was R$3.7 billion, with net debt/EBITDA at 1.5x.

Outlook and guidance

• Guidance for disinvestments remains at R$1 billion, with timing flexible based on market conditions.

• Dividend payout guidance maintained at 50%; share repurchase program ongoing with room for further buybacks.

• Ongoing renovations and expansions in key malls, with new projects to be delivered between 4Q24 and 1Q25.

• Loyalty program rollout to all malls by 2025, with significant increases in user engagement and benefits redeemed.

• NOI growth expected to outpace inflation, supported by efficiency gains and ongoing integration synergies.