Allos (ALOS3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$656.4 million in Q2 2025, up 8.4% year-over-year, with total sales of R$10.2 billion, a 9.5% increase, and sustained operational efficiency and cost reductions.

• NOI grew 8.5% to R$579.8 million, with a margin of 93.3%; adjusted EBITDA rose 10.8% to R$475.7 million, margin 72.5%.

• FFO reached R$304.6 million, up 1.9% year-over-year, with FFO per share up 8.8% due to share repurchases.

• Occupancy rate remained high at 96.4% in Q2 2025, with 188 new contracts signed and 77 more in July.

• Continued focus on portfolio strength, digital engagement, mixed-use development, and prudent capital allocation.

Financial highlights

• Sales per sqm reached R$1,253, a 58.2% increase since 2Q19 (CAGR 7.9%).

• Media revenue grew 31.3% year-over-year to R$46 million, now 6.4% of gross revenue.

• Occupancy cost decreased to 9.7% in Q2 2025 from 10.2% in Q1 2025.

• Net delinquency improved to 1.9% in Q2 2025, down 60 bps sequentially.

• Net income was R$186.7 million, margin 28.5%, impacted by higher financial expenses.

Outlook and guidance

• No changes to 2025 guidance for dividends, EBITDA, or multi-use projects; positive IGPM carryover expected.

• CAPEX expected at the lower end of guidance due to efficiency gains and lower intensity for next year.

• Media revenue from airport contracts to ramp up gradually, reaching full maturity over the next year.

• Expansion of the Benefits Program APP to 34 malls by July 2025, connecting thousands of brands to over 5 million new potential consumers.

• Ongoing expansion and redevelopment projects in key malls, with several major openings scheduled through 2027.