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Parque Arauco SA
SGO:PARAUCO

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Parque Arauco SA
SGO:PARAUCO
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Price: 3 000 CLP 0.81% Market Closed
Market Cap: 2.7T CLP

Parque Arauco SA
Investor Relations

Parque Arauco S.A., a stalwart in the Latin American real estate sector, has firmly rooted its presence across Chile, Peru, and Colombia, operating a sophisticated portfolio of commercial real estate assets. From its inception in 1982, the company has carved a distinct niche within the shopping center industry. Its operations revolve chiefly around owning, managing, and developing retail spaces—ranging from large malls to urban entertainment centers. This strategic focus ensures a continuous influx of tenants ranging from multinational retail chains to local businesses, creating vibrant ecosystems that serve as central hubs for consumer interaction in each region. The company’s model thrives on adapting to the evolving needs of each locale, ensuring its properties remain high-performing assets, which waste no opportunity to attract foot traffic and, consequently, rental income.

Parque Arauco effectively capitalizes on multiple streams of revenue, predominately through leasing retail space to tenants, which varies from anchor stores to smaller specialty shops. The dynamic mix of tenants ensures a steady cash flow, bolstered further by the revenue from parking services and additional charges for maintenance and promotional activities in these bustling commercial spaces. Furthermore, by continuously reinvesting in properties, enhancing consumer experiences, and adapting to regional market demands, the company not only sustains but often boosts the value of its assets over time. This robust model, combined with strategic international diversification, positions Parque Arauco as a resilient entity in the fluctuating landscape of commercial real estate.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 24, 2025
AI Summary
Q3 2025

Strong Growth: Parque Arauco delivered double-digit growth across all main financial metrics, including revenue up 24.9%, EBITDA up 26.1%, and net profit up 28.2% versus Q3 2024.

Portfolio Expansion: Acquisitions like Parque Arauco Kennedy East in Chile and Minka in Peru are each contributing around $1 million in monthly EBITDA and underpinning results.

Record Margins: Adjusted EBITDA margin reached 76.1%, the highest level in recent years, supported by cost control and higher revenues.

Mixed Performance by Country: Chile and Colombia showed strong growth in sales and rents, while Peru faced short-term headwinds from asset expansions and lower traffic, though recovery is expected.

Sustainability Milestone: Parque Arauco issued its first green bond, the first in the sector in Latin America, linking financial strategy to sustainability commitments.

Reorganization and Efficiencies: A major reorganization aims to centralize support functions, streamline decision-making, and drive further cost savings, including a high single-digit reduction in personnel costs.

Positive Outlook: Management expects continued strong performance in Colombia and Chile, with Peru set for a rebound after expansion-related disruptions.

CapEx and Growth Pipeline: The company is executing a historic $750 million investment pipeline, which will expand total GLA by 8%.

Key Financials
Occupancy
95.6%
Tenant Sales Growth
20.2%
Adjusted EBITDA Margin
76.1%
EBITDA Margin
72.4%
Implied Cap Rate
7.8%
Price to FFO Multiple
11.4%
Net Financial Debt to EBITDA
5.6x
CapEx Pipeline
$750 million
GLA Expansion
8%
Other Earnings Calls

Management

Mr. Eduardo Perez Marchant
Chief Executive Officer
No Bio Available
Mr. Francisco Javier Moyano Perez
Chief Financial Officer
No Bio Available
Nicolas Bennett Nualart
Chief Operational Officer
No Bio Available
Mr. Rafael Labarca Guajardo
Corporate Investment Officer
No Bio Available
Mr. Miguel Nunez Sfeir
Chief Accounting & Auditing Officer
No Bio Available
Mr. Cristian Calcutta Kusanovic
Chief Technology Officer
No Bio Available
Lauren Brown
Head of Investor Relations
No Bio Available
Mr. Duncan Grob Urzua
Chief Legal Officer
No Bio Available
Ms. Carolina Andrea Galletti Vernazzani Fuente-Alba
Chief People Officer
No Bio Available
Mr. Andres Torrealba Ruiz-Tagle
Chief Executive Officer of Chile Division
No Bio Available

Contacts

Address
SANTIAGO
LAS CONDES
Cerro Colorado 5240 Torre 1 Piso 15
Contacts