Allos (ALOS3) Q3 2024 earnings summary

Executive summary

• Achieved total sales of R$9.5 billion in Q3 2024, up 8.0% year-over-year, with strong regional growth and top performance at Shopping Campo Limpo (+29.1%).

• Net revenue reached R$643.0 million, up 8.5% year-over-year, driven by growth in media and parking revenues.

• FFO per share grew 37.2% year-over-year, supported by operational performance and share buybacks.

• Shopping Campo Grande expanded with 12.2k sqm added GLA, 150 new operations, and a new loyalty program.

• Recognized as Company of the Year by Exame and Valor Econômico, reflecting leadership in retail transformation and sustainability.

Financial highlights

• Adjusted EBITDA was R$468.0 million, a 6.6% increase year-over-year, with a margin of 72.8%.

• NOI rose 4.5% to R$556.0 million; FFO increased 27.7% to R$307.2 million.

• Net income was R$112.8 million, reversing a loss in 3Q23.

• FFO margin rose to 47.8%, up 7.2 p.p. from 3Q23.

• Net financial expenses fell 24.6% year-over-year due to liability management.

Outlook and guidance

• Loyalty program to be rolled out to all malls by 2025, with 85% benefit redemption rate in pilot locations.

• Expecting continued acceleration in rent and EBITDA growth into 2025, with guidance to be updated after Q4 results.

• CapEx guidance for 2024 is R$450-500 million annually, with ongoing investments in mall expansions and upgrades.

• Monthly dividend payments implemented, with R$150 million approved for 4Q24.

• Continued focus on digital transformation and retail media expansion.