Iguatemi (IGTI3) Q1 2025 earnings summary

Executive summary

• Total sales reached BRL 5 billion in 1Q25, up 17% year-over-year, with market share rising from 7.4% in 2019 to 10.7% in 2024, and strong portfolio differentiation driving above-market growth.

• Occupancy rate improved by 2.5 percentage points to 96.6%, reflecting a "flight to quality" among tenants and successful store openings, including Sephora and upcoming H&M locations.

• Major M&A activity included the R$2.6 billion acquisition of stakes in Pátio Higienópolis and Pátio Paulista, with R$700 million invested, and a binding MoU to sell 49% stakes in Market Place and Galleria for R$500 million.

• Board strengthened with two new independent members, now 62.5% independent, and R$200 million in dividends approved for 2024, with R$50 million advanced in March.

• ESG initiatives advanced, with CDP rating improving from C to B, new employee development programs, and infrastructure upgrades.

Financial highlights

• Adjusted revenue grew 8.5% year-over-year to R$330 million; adjusted EBITDA reached R$244.3 million, up 8.5%, with a 74% margin (80% for malls).

• Net income was R$114 million, up 32.6% year-over-year; adjusted net margin at 34.5%.

• Same store sales rose 6.3% (7.5% including Rio Sul); sales per square meter increased 12.1% to R$7,684.

• Fashion, luxury, and jewelry segments saw strong growth, with jewelry up 27% in 1Q25.

• Net default and rent discounts at decade lows, with net delinquency rate dropping to 1.4%.

Outlook and guidance

• Guidance for 2025 reaffirmed, with net revenue growth for malls of 7–11% and EBITDA margin for malls guided at 82–85%.

• Focus on extracting synergies from recent acquisitions, improving lease spreads, and portfolio optimization.

• Maintenance CapEx expected to reach 5% of NOI by year-end, with project ramp-up and R$120–150 million in expansion CapEx planned.