Iguatemi (IGTI3) Q3 2024 earnings summary

Executive summary

• Sales grew 9.7% year-over-year in 3Q24, with same-store sales up 8.9% and occupancy rate reaching 95.9%, outpacing industry averages.

• Net revenue increased 9.9% year-over-year to R$310.7 million, and net income rose 69.4% to R$101.2 million in 3Q24.

• Portfolio optimization included the sale of São Carlos and Alphaville stakes and the acquisition of a 16.6% stake in Rio Sul.

• Tenant mix was enhanced with new international brands such as H&M, Balenciaga, and Alo Yoga, and further expansions are planned.

• Recognized for workplace excellence, sustainability, and mental health initiatives, with high favorability in Great Place to Work surveys.

Financial highlights

• EBITDA reached R$250.8 million in 3Q24, up 1.2% year-over-year, with a margin of 77.5%.

• FFO increased 44.7% year-over-year to R$149.1 million, with FFO margin up to 51.4%.

• Net revenue for 3Q24 was R$323.8 million, up 7.3% year-over-year.

• Occupancy cost dropped to 11%, the lowest in 11 years for the period.

• Net financial result improved to -R$57.6 million, a 42.5% reduction in losses year-over-year.

Outlook and guidance

• 2024 guidance reaffirmed: net revenue growth for malls at 4–8%, EBITDA margin for malls at 82–85%, and total investments between R$190–230 million.

• Strong Q4 expected, supported by Black Friday and Christmas, with high occupancy and low delinquency.

• Occupancy rates expected to reach 97% by year-end, with leverage below 2x net debt/EBITDA through 2025.

• CapEx expected at the top of guidance for 2024, with 2025 guidance to be released at year-end.