Good afternoon. Thanks for waiting. Welcome to the earnings call of ALLOS for the discussion of the results regarding the third quarter of 2023. We have here with us Mr. Rafael Sales, President, Leandro Lopes, VP of Business, Miss Daniella Guanabara, Finance Director and IR Director, Mauro Junqueira, Director of Investments and M&A, Vicente Avellar, Operations Director, and Felipe Andrade, Commercial Director.
We inform you that this event is being recorded, and that all the participants will only hear the earnings call during the presentation. Thereafter, we are going to start the Q&A just for analysts and investors, when further information will be available. Should you need any assistance, please request help by typing asterisk zero. This is being transmitted simultaneously via the Internet, via webcast, and you can access it on the ir.allos.com address, where you have the presentation available.
The replay of this event will be available after its closing for one week. Now, we would like to inform you that questions can only be done, asked by the telephone. Should you be connected via webcast, your questions should be submitted to the IR team via the specific email. Before we proceed, we would like to clarify that any statements that might be done during the earnings call regarding the business perspectives of the company, projections, and operational goals, are based on premises and beliefs of the company, and based on information currently available.
Or, these forward-looking statements are not a guarantee of performance. We have risks and uncertainties regarding future events, and therefore depend on circumstances that might or might not happen. Investors should understand that general economic conditions, industry conditions, and other factors might affect the performance of the company, and might lead to results that are different than what is stated in the forward-looking statements. Now, I'd like to give the floor to Mr. Rafael Sales. He will start the presentation. Mr. Rafael, the floor is yours.
Good afternoon, everyone. Thank you for being here. Now, we close the third quarter, very excited with the ALLOS perspectives. After the launch of our new brand, we continue to advance in our integration. We did, last month, the first meeting of the leadership of the companies, strengthening and disseminating the culture throughout the team. We had the launch of our values, based on which we will create an organizational culture that is more robust, keeping our long-term overview and delivery of results for the shareholders. Slide two.
Before we talk about the financial indicators, I would like to highlight a few transactions that were announced recently. Over the last few months, we announced disinvestment total in four of our malls. And disinvestment in minority shares in two malls, over BRL 1.3 billion, with an average cap of 8.1%. This is a demonstration to show that we try to optimize our capital allocation. We are extracting value from the pricing on the private assets, and the valuation of our company is negotiating, and the stock exchange is reflecting that. In parallel to the disinvestment, we have an investment, a share buyback program of up to 5% of the company total capital. We want to increase the return per share of ALLOS.
Until October, we bought almost 6 million shares, which is 1% of our total capital of ALLOS. We have the guidance that was announced this year in April. All the initiatives rectify our commitment in generating value for our shareholders. We have an active capital allocation for investment and disinvestment as well. Slide three. Let me show you a few operational highlights. Here, I would like to highlight the continuous work of quantification of mixed quality in our shopping malls. We have regained some strategic accounts aligned with the desire of our consumers, in a process that will be translated in higher rents in the future. This movement is an opportunity to capture more sales and profitability without the necessity of CapEx exposure in the shopping mall.
Plaza Sul, for example, the shopping mall, the electronics store, which was a flagship store, led to a casual dining restaurant that is very well known in Brazil, and it will add guest-- the gastronomy in the shopping mall. Another thing is in Plaza Niterói. There was a big area, 1,000 square meters, before occupied by a fashion store. Now we have three different operations through the city, Lacoste and two Renner stores. These two cases, as well as others in our portfolio, we are bringing stores that are more adherent to the mixed portfolio of our company. And the speed with which we are dealing with these changes, along with the quality are a great demonstration, clear demonstration of commercial synergies. The third quarter, we had had results.
The total sales of ALLOS grew 6% in regards to the same period over last year, and this growth overcomes in three percentage points of retail reported by IBGE for the third quarter. Meanwhile, the sales of the new stores that got into the portfolio over the last 12 months grew 34%. This is a very expressive number demonstrating the success of our work. We're gonna show more numbers and KPIs. Looking at the results on Slide 4, we see that in the third quarter, the net revenue, BRL 641 million, growing 7% in regards to the third quarter of last year. We have an increase of 17% in media and 18% in parking. The parking result was a highlight that can be explained by the increase in the tickets and higher flow.
Over the last few months, we had the launches in the movies that attracted more visitors to the shopping malls, consolidating the shopping malls as one of the main places for entertainment. We also have the diversification of the mix and increase of sales and capturing the synergies in the businesses of area of ALLOS. Same store rent also growth that shows relevant. The NOI got to BRL 573 million, the EBITDA, BRL 480 million, and growth of 11% in regards to the previous quarter of year on year, we have a growth of 300 basis points comparing, in comparison to last year. I would like to highlight that our SG&A had a real drop of over 11%, confirming that our process is going and performing positively for the performance of the company.
With the operational results and higher tax efficiency, the FFO reached BRL 282 million. Important to highlight that over the last twelve months, our FFO already reached BRL 1.2 billion. In the accumulated of 2023, the indicator grows 17%, and it shows that with the integration process restructured, we have expressive results as a combined company. Finally, I would like to highlight that we are recognizing in this quarter a few non-recurrent effects, no, no cash effects in regards to the fair evaluation of some malls that are being sold, such as Jardim Sul and Estação Curitiba. Remembering that these shopping malls were accounted based in evaluation methodologies that not necessarily reflect the current market value of the assets.
However, we should highlight that the evaluation of the sales are all good based on the cost of capture of capital in Brazil or with the listed value in the stock exchange. The company generated a robust operational cash, BRL 1.3 billion in the accumulated of 2023, with a conversion of 40% of the EBITDA in cash. This is very important for our shareholders, showing the value of our business. Now I will give the floor to Daniella, and I will come back in Q&A. Thank you.
Thank you, Rafael. Good afternoon. Now let's go to Slide 5. As Rafael has commented, our commercial rhythm continues to be strong. Just in the third quarter of the year, we signed 280 new contracts, closing the period with an occupancy rate of 96%. We are regaining strategic points for the expansion of big brands in several shopping malls of the company, such as Life by Vivara. Seven new contracts signed over the last two quarters.
Nativa, well, the NV also signed to open another store in Shopping Cuiabá. And the newly launched stores, I would like to highlight the first Marvel store of Latin America that opened in Parque Dom Pedro. Slide six. We have the occupancy cost of 10.9% over the third quarter of 2023, as reported in the third quarter of 2022. Its threshold is sustainable for the operation of our tenants and contributed for an improvement of the delinquency. The net delinquency of the period was 0.6%, and it represented a drop of almost 2 percentage points versus the second quarter of 2023.
The variation of the indicator comparison to the third quarter of last year can be explained by the big volume of recoveries in 2022. The third quarter, the debt is higher than the second. An improvement in the delinquency, 2% of the net revenue. Now, Slide 7. We see that on the third quarter of 2023, we had a drop in the average cost of debt for CDI plus spread of CDI from 1.3% in the third quarter of 2022 to 2.7% in the third quarter of 2023. This reflects the management of liabilities over the last year. The profile of our debt, we closed with 83.1% index to the floating rate, 52%, fixed rate and 1.7% inflation. The leverage is 2.3x net debt over EBITDA.
Now, we have some recent highlights of our sustainability journey. The commitment with ALLOS-- of ALLOS with sustainability permeates a series of initiatives and projects that allow for the local development of our population. We have the campaign, De Olho nos Olhinhos, the initiative of the journalist couple, Tiago Leifert and Daiana Garbin, that aims to raise public awareness about retinoblastoma.
This happened in nine malls of the company. The shopping malls, Eldorado and Shopping Taboão, also had the presence of the couple that talked live to the families. North Shopping, which is in the northern zone of Rio de Janeiro, had the third edition of a very special project, North Shopping Acolhe, along with the government of Rio de Janeiro. All throughout August, the program received per night, people that are homeless to be welcome in the shopping mall.
We offered shelter, food, clothing, and also speeches on getting these people back to work. We also have the first combined week of diversity. Five days promoting learning, exchange of experience, and this diversity and inclusion week is responsible for welcoming all workers, stimulating discussion and awareness and education. We had panels with special invitees, guests, and where we talk about dialogues of respect, literacy, and so on and so forth. Slide 9. Loyalty program progress. We have it active in eight shopping malls of the company. We have an app, and we have 840,000 registered users, an increase in 200,000 in regards to September of 2022. In the third quarter of 2023, we got to 27 point.
27% GMV penetration, and in the accumulated, the program added BRL 1.5 billion in GMV. Before going to the Q&A, I would like to bring you another news. The launch of the expansion of Shopping Campo Limpo. This expansion that represented 30% of the area of the shopping mall, launched in November, and we have the GLA at high levels. We are considering the offerings of services and products for our clients, and besides the expansion, the shopping mall was replenished, bringing more comfort. Thank you very much. Now we will start the Q&A.
Thank you very much. We will start the Q&A session for analysts and investors. Type asterisk one if you have any questions. If your question was answered, you can type asterisk two. Please wait. Our first question from Aline Caldeira, Bank of America.
Good afternoon, Dani and Rafa. Thank you for the opportunity. I wanted to talk about the asset sales. Two questions. First, you already mentioned that the incentives for selling the assets is within the holding, the guidance. Well, you sold BRL 1.3 billion. Do you use all of this credit from the sales along those lines? This last sale was done receiving the FII quotas.
How do you have it as an alternative for closing this in the future, since you're getting close to the objective of selling the assets for the year? We see that there is some relevant FII captures, so I wanted to get your impression. Also, along those lines, I believe that this year you sold the core, that you wanted to disinvest in the portfolio by the size of NOI. So how can we think about the investments for next year? Thank you.
Aline, I'm gonna start answering the two questions. In this first round that we had of selling the assets from September until the last one that we published, along with the results, we did a volume of BRL 1.3 billion. Out of that volume, we have a total of 85% that we will receive in cash and 15% that we will receive in quotas. I think it's a good balance between quotas and balance and cash. We had a similar situation last year when there was the sale of Campinas. Campinas was sold to three different FIIs in quotas. The total of the sale, BRL 325 million, and we sold these quotas respecting the daily limits, respecting the price oscillations.
And if we add what we already sold, plus the dividends received through this period, we have BRL 239 million, which mean a little less than 74% of the total. So I believe that this is a balance between the cash and the quota is healthy, and we've managed to operate well to disinvest from those quotas without that causing any harm for the liquidity and the pricing of these funds. I believe that this is a strategy that was asserted.
In regards to the fiscal issue that you commented, since the last announcement, we can consume the total cash, and even we have a small tax that we can declare at JCP, and we can also reduce it. So we got to the objective that was to use a year where we had the-- Fiscal issue, and then we sold the assets that generated the capital, and therefore we can reduce the payment of tax for that. Now, Rafael can talk about next year.
Aline, thank you very much for the question. Just to clarify a point, the motivation to do the deals is not to work with the fiscal liability. It's actually to make the return better. And as we know, M&As, you don't do it when you want. You do it when the market allows for it. So the market allowed for it, so this allows us to have a fiscal efficiency that is better because this is an additional in regards to the exit strategies of the assets and portfolio. We are going to continue to actively seeing the shares of disinvestments and investments.
Obviously, when you have formal leaving completely from the standpoint of, of ownership and our participation in them, we already reduced the exposure to the shopping malls that have the characteristics that we've been pointing out, and that we do not want to privilege today. That should continue to happen, but we do not discard investments as we've always done, as long as it makes sense. Given the current scenario, the investments that we see are in our shares. It's an investment, a repurchase of the shares to pay for an expense of debt. It is a way to invest in the cost of disinvestment, and new investments will be evaluated as the return or with a strategic alignment that we have.
Thank you.
Next question is Pedro Lobato, Bradesco BBI.
Good morning. Thank you for the opportunity. I just wanted to do a follow-up on the point of the quotas. A relevant fact, Dani mentioned that in the percentage of the sales was 4%. So we assume that the 95% to receive of the shopping, this assign is gonna be in quotas. The relevant fact is that it can be money or quotas, so that is defined, that it's gonna be in quotas. Just to confirm that, and also I wanted to understand, is there a low capita? And the second question is to get an update on how is the integration with BRMalls. Is it under the way-awaited schedule? And what can we expect in terms of costs, something along those lines for next year?
Hi, Pedro. This is Dani. Well, answering your first question, when we talked about the 15% in quotas is conservative, if the choice of quotas and cash is done in quotas. So maximum, we would have 15% in quotas of the total, 1.3. The update on the integration, well, on what the cost is, the schedule, we are aligned with the, with the agenda. We are advancing with the integration. You can see on the results of revenue and the results of costs and expenses, that we have had significant advances. When we talk about this scenario where you have an IGP that over the last 12 months got negative, and when we look at our rent revenue growing 5.7%, this is a result that we are managing to extract synergies in the revenue.
Now, looking at the operational indicators with a difference in total sales and the same store sales, we can see that the new stores that are getting into our portfolio are getting with a growth in sales that are very expressive. So that means that we've got it right in the condition of the mix, and it has been aligned with the demand of the consumers.
So we managed to bring operations, and our operations are selling very, very well. When we think about the implementation of the systems and the schedule that we have for that, this is a bit slower. This is more in the medium term. This is a pre-project to identify what are the opportunities and challenges that we have to unify the RP, two legacies of the two companies. You know, that both had a different system. When we think about the cost of the integration, it's already balanced with what we expect of synergies. We reinforce that the guidance of synergies is BRL 180 million-BRL 110 million, and that effect of 40% should be here of cost and expenses.
Thank you.
Next question, Tainan Costa, UBS.
Good afternoon. So I wanted to talk about occupancy. The commercial activity has been going very strong in this quarter. So I wanted to understand, from when should we see an improvement in the occupancy indicators? And correct me if I'm wrong, it's over 44,000 square meters of hired GLA. So can we have an increase in the occupancy? Of course, that might happen in the set of turnover once it normalizes. Then in that point, I wanted to understand, do you see any space for the removing of big tenants, or have we reached a peak? So it would be the basis of growth and the turnover, the cost benefit of the big tenants.
Hi, thank you for the question. The activity of management of the mix and stores is a very dynamic activity. Every day, we adapt it to the opportunities that appear and the challenges that arise. It's very difficult to predict that all of that ABL, that GLA that is going to be commercialized, will be automatically an addition of NOI, net NOI, because obviously there might be other vacancies in the future. That's why the guidance is a guidance, general guidance for EBITDA of the year that we hope to reach.
Next year, we're going to have a different guidance, and we will be able to think about that, about that new trend. But the truth is that the dynamics and the examples will be positive. As the call with Plaza Sul, we have Americanas by Coco Bambu. Marisa gave the space for the mix with an opportunity for the free brand, and of course, we had a case such as this, but that depends on the demand for that specific tenant, that we expect them to go to the mall, and that they can mobilize themselves to get there.
And it doesn't happen with the speed that we want, and sometimes we have a dispute, and we try to maximize profitability for the company. It's natural. So it's not an exact science. It's a process of negotiation and trying to get an improvement of the mix. But the commercial side contemplates these uncertainties.
Our system of mix and pricing, the delay in the process of turning negotiation, we, the positive part, which is an increase of demand in certain areas. So I wouldn't do a direct math of increase of NOI, but I think that this is a positive trend of improvement of the mix and improvement of alternatives for the consumer, and better profitability of square meters on the long term for us.
Thank you.
Next question is from Hugo Grassi, Citibank.
Thank you for the opportunity. I am from the team of André Mazini . The question is about Shopping Eldorado. The transaction, while ALLOS administers the shopping mall, but it doesn't have the ownership of the shopping mall. But you are an administrator, and you have a lot of information about the operation of the business. Still, it was a choice not to buy that share that was bought by RBR. So it seems like a good mall, one of the top three or four or something. So we wanted to know, why didn't you take part in that bidding?
Hugo, thank you for the question. We administer, manage the shopping mall hired by the two partners, the fund and the private person that represents the shareholders. We do not have a preference as administrator. There is no preference. I do not know the partnership relationship, and we do not comment those relationships in the malls that we manage. But we continue to be happy to manage the shopping mall.
Really is a shopping mall that is extremely important and that we have a lot of pride in providing services for our clients and partners, which are the shareholders of the shopping mall. I understand that what happened was a transference of the shares in one of the vehicles that invest in the shopping mall. The partnership that controls the shopping mall, there was no change.
Thank you.
Next question is from Jorel Guilloty from Goldman Sachs.
Good afternoon. I have a couple of questions. Well, I wanted to go back to the selling of assets. I wanted to get more of an understanding if the structure of sales, do you see this more as a pending issue in the type of sales that you have for the real estate, or is this more of a pinpoint issue? Could we see more sales in cash, more, partners?...
How do you see this dynamic? The other question is, I wanted to understand the trend of the leasing and spread, that you are seeing a trend that is differentiated among the different types of shopping malls, and you have different sales in different regions. So I wanted to understand if there is any region that is selling stronger or that you have lower prices. Well, that would be it.
Hi, Jorel. Thank you very much. Good afternoon. For your-- Thank you for your question. In fact, the FIIs infrastructure is the one that allowed for the generation of more opportunities of disinvestment. Since the strategic partners, the strategic players, they have different speed and in the capture moment that the FIIs are having.
We have a strategic disinvestment that is a good company that is buying, but the FIIs are partners that we like to have as partners in our shopping mall. Some cases, we are disinvesting 5%, 3%. Others, we're gonna have them as the long-term partners, as other cases. For the increase of ROI and return on investment for the shareholders, it makes a lot of sense to deallocate some of the capital for the shopping malls that are more mature and reallocate them in opportunities of growth or in other cases, such as the repayment, repurchasing of the shares and then payment of debt. So we understand that at this time, it's a good time for the capture of FIIs, and that's why the board is directing it to this partner.
The receiving in quotas, it depends on the case-by-case negotiation. As we explained, a great deal of these transactions are done in money. They're gonna be paid in cash, some in installments, but with us having seen an opportunity of receiving, orders, so we can have flexibility with the product, specifically in the assets that are at the end of the process or in the cycle. And it's naturally that this is the end of the window that we should close in this month. The capture should be decreased, but it's difficult to say that this is a trend or that this is the only strategy. Today, it will depend on the macroeconomic and the interest rates. Regardless of sometimes the there will be a less drop because of the political issues, we continue to see a trend in the drop of interest rates.
For us, is very good because it benefits our balance sheet, which is very well aligned with the spread over the CDI, which is better than over the last few years. It has been dropping, and the drop in interest rates really helps with the tenants. Well, these tenants, we have the capacity to invest more cash flow at a better cost, so we can continue to invest.
That, consequently, is favorable for the consumers that need... that are more sensitive to leverage. With this scenario of interest rates, it's very positive, so the scenario for sales for next year is, will be very good. So maybe now we will be able to decrease the process of sales, and we will see a sales. I meant sales of assets, disinvestment.
So in terms of leasing and spread, we are very positive in regards to what is received, the actual delinquency. The contracts we bring tenants with higher quality, and these are new contracts. We had the spread above 80%, which is what we receive, in fact. I don't know if you know that concept, but instead of simply getting the target contract that we give a discount or there is a delinquency, we have the leasing spread in regards to the receivable, the one that we in fact received in the previous operation. In the renewals, we are not publishing because we're still getting the two systems of the two companies, so we can combine the leasing spread of the renewals. But we continue to see positive numbers.
It's just difficult to talk about the specific number, but is positive because it's good occupancy, specifically because of satellite areas. We have more vacancy in flagships, which favors the renegotiation with the satellites, so we can substitute flagships for smaller areas, adjusting the strategy with an occupancy costs, as you know, always in reasonability, even with the possibility of upside for us. I hope that I helped.
Next question, Elvis Credendio from BTG Pactual.
Good afternoon. Two questions. Can you comment a little bit more on the evolution of the same-store sales? What is the performance of the segment? That was something that really brought your attention. And also, if you can share how the rhythm at the fourth quarter. The second question is capital allocation. You said that you can recycle some assets. The company has some buyback program with a higher payout, but should there be any recycling, the company would be, would have more. So I wanted to understand, what do you see in the possibility of capital allocation? What would be your preference in a deleveraging event?
Hi, this is Danilo. I'm gonna answer the second question, and then we can talk about sales. In terms of capital allocation, I think that we have our guidance. We are reinforcing the guidance of the dividends. I think... Well, we launched the program of repurchase, which has an objective of increasing the return per shares. It is great for capital allocation. When we get the total sales, BRL 1.3 billion, they are disinvested at a cap rate average of 8.1.
While we have the opportunity of investing in our shares, that today negotiate at a cap of 3% for 2023. So we understand that this is part of the strategy of capital allocation, and it's part of the total return for the shareholders. So our guidance is kept, and besides that, we are working with the process of repurchasing the shares. I'm gonna start talking about the sales, and then I will give the floor to Leandro. When we talk about the evolution of the third quarter, we had the first month of July, that was. We had the flow of blockbusters that we had, you know that. When you have a high flow in the movies, it ends up having the benefit of the movies at the shopping mall.
We had a positive consequence for parking lots, also the increase in the rent, and it brings more sales. The movies attract a lot, for example, the restaurants in general. So within the quarter, August, well, September, it improved a little bit. So this is the dynamic that we had in the quarter. Well, just to complement the same-store sale, we see within the segment some positive news. For leisure, theaters, cinemas, above 25%, so this ends up pulling all the restaurant, the food court is performing very well. Services is performing very well. In the negative end, a bit below, you see the electronics that is suffering because of the high interest rates.
So another positive news is that when we see the same-store sales in the category of satellites, it's above the average, and the flagship is suffering a bit more. This is not news, because we see some cases of retail. So we see this number in a very positive way, specifically when we look at the health of the satellites in several segments, such as accessories, events, stores, for shoes, and this gives us a lot of optimism for the end of the year.
Thank you.
Next question, Marcelo Motta, J.P. Morgan.
Two questions. Still doing a follow-up in the issue of sales. I wanted to understand if you would open how the fourth quarter is starting, comparing to the other two. It shows how is the sales in October. I wanted to understand the basis. And the second question is the impairments. We know that you do the impairment at the moment that we have the sales of the assets. We're thinking if there is anything else, from BRMalls, that you can have something internal, maybe that's a driver to ... We have maybe a downsize to compensate. So I wanted to understand your train of thought along those lines.
Hi, Motta. Starting on the second question, the fact that we have different accounting practices from the fair value standpoint or cost, this is natural when you have to do adjustments such as these. But the impairment, in this case, are, in my opinion, a no event, because a no event, because it generates... We, we have to talk about the values, in fact. We are seeing the participation of values that are not comparable to the capital cost of a Brazilian company, and also comparing the way the...
Comparing with how the shares are negotiated in the stock exchange for the entirety of this of this sector. So the valuation in our segment is, the decision is not to create impairments or use these impairments. This is a consequence of an accounting alignment, and it will continue to be done. So this is for bad debt and other numbers as well, that we expect to have the result very much aligned from the accounting standpoint.
Sales in the fourth quarter, they continue not so strong as they were in October, but we continue to be optimistic with the growth in sales. We had a few questions on guidance because of the authority in the capital markets, and now we are avoiding giving mar- numbers in the quarter in anticipation. But we have the guidance that are ongoing in regards to results of EBITDA and CapEx. This guidance, we are keeping to the guidance in delivering what we said that we were gonna do into the market. The sales are doing well in the positive side, in sales, not with the intensity of the first semester, but still doing good.
Thank you, Rafael.
Next question, Maria Angela Castro from Itaú.
Good afternoon. I have two questions. One is regarding the provision that you commented. I know that this is something that has to be done in a gradual way, but I wanted to understand, what is the space for us to continue to revert the provisions for PDDs? And also I wanted to ask a question in regards to sales. We noticed that the Boulevard Shopping Bauru had one of the best performances in the quarter, and this is completely divested by the company. This, what is this suggesting? How do you do the choice for this investment?
Hi, Maria Angela. Starting by the bad debt, PDD, you can see that in the result of the third quarter is less than the second quarter, following the trend that we saw in the delinquency. There is a delinquency at a lower threshold. In the third quarter, we managed a few recoveries, and it's natural that the bad debt has a small delay in regards to the delinquency. It will little by little converge to the number, so it's natural that we have the convergence looking up ahead. When we talk about performance of sales, I think that we had a sales performance that was very uniform when we talk about the entirety of the portfolio, specifically in the third quarter.
If I can highlight in a regional way, both the southern region and the southeastern region and the central eastern, they did well. The southeastern went very, very well. But when we break down, the state of São Paulo was strong, and Bauru is included. And when we look at Rio de Janeiro, I have assets performing very well, but some assets, they are for the middle class, they had a worse performance. So when we look at the portfolio, entirety of the portfolio, you have more of an average of performance that is positive, with a few specific highlights in some regions. I would just complement that some malls, big malls in regions that are for the middle class, they have, flagship stores for electronics that are very big, that impact the total sales, but not impact the rent.
For example, North Shopping, biggest shopping mall in the North region. They're gonna have big electronic flagship stores, and this is gonna affect the, the entirety of the mall, but not the financial health of the shopping mall. You get the NOI and the occupancy of satellites very high, but some flagships leaving is an upside for the cost of our mall.
So I wouldn't just say, you know, sales, general sales, but we should take a look at the composition of the return of the rent in the shopping malls. In the case of Bauru, we know that the shopping mall is performing very well, and the reason of the disinvestment, we are going to continue to manage the shopping mall. We disinvested because of relevance in the market, and this is an asset that obviously we had the opportunity of seeing with values that we understand that are good and cost-efficient for the company.
Thank you.
Next question is from Rafael Hedder, from Banco Safra.
Good afternoon, everyone. Two questions. First, I wanted to talk about the, maintenance and improvement plan. Well, I wanted to know the threshold that you're investing. Post-pandemic, some of the malls, you had the decrease in the footprint, and would there be a golden rule of what we could expect as a healthy threshold of their NOI for the improvement work? And if you can talk about expansions... you launch one, but I wanted to know if there is anything on the top line, on the short term, if you can share with us?
Excellent question. Thank you very much, Rafael. Well, today we have the threshold of investments that we understand that is very close to the running rate of the company. This quarter was a bit smaller than what is quarterly, but our golden rule, as you mentioned, is to keep between the improvement and expansion year-on-year. From the general standpoint of larger space of time, 8% of the NOI.
The idea is to have the shopping mall updated, so we don't have to do great works or improvement and updates. However, in some cases, as we know, in the portfolio, for example, Parque Dom Pedro, it was a process of improvement that are big proportions, and they were already done, and now they're generating results. Parque Dom Pedro is a highlight in that sense. And we had an improvement because of the improvement in sales because of the improvement.
Now, I don't expect that we have a big difference over the next few years. In those lines of improvement, we're gonna continue to keep our equipment updated, so, we are going to service our clients every day. Now, the expansions we have, relevant expansions approved in Tijuca, Mooca, Plaza Niterói, Franca and Taboão. The process is under approval, but it's already developed, and we have the work still happening in Shopping de Bahia and Parque D. Pedro, that will generate areas of satellites. So these are improvements that generate satellite, not new areas for GLA, but, it allows for new satellites in the mall. So we have a project that is happening this year. We're gonna have the addition of an area that will be ready just in 2025.
So this is a project that when the shopping mall is operating, we must be careful not to hinder the sales of the shopping mall. We have expansions that are pinpoint. And focusing in what the consumer needs today. So food and beverages, services, lifestyle, and, well, improving the time that the consumer spent... That the client spends in the mall. Thank you very much.
Next question, Antonio Castrucci, Santander.
Two questions. The first one, in regards to the work of the mix, I wanted to understand, what are the assets in the sales composition for this, and what are the assets that you think that there should be an improvement? The other one is the loyalty program. We have an improvement in the penetration. Can we see this moving ahead for the fourth quarter? What are the main assets that you have a good, capillarity?
Hi, Antonio. Good afternoon. Here is, I am the director of the Innovation and Technology. I'm gonna talk about the loyalty program.
Your doubt is about what is the greatest, what is the shopping mall that has the best capillarity, is that it?
Yeah. What are the shopping malls that had the best growth in capillarity and over the next quarters, where you're gonna focus to do the rollout of the program? We are in eight assets today with a program of relationship program. The shopping malls that best perform, they have to do with the date of launch. We have a maturity that is very good in Tijuca, as well as Tamboré and Mooca and Plaza Niterói, which are four of the assets that have the best capillarity. They. We have above 30% of GMV.
Of course, in the third quarter, we have Christmas and the promotions, and with that, we hope that we get to 40% in December. For next year, we have in the pipe, for this format, for Leblon, before the Mother's Day. Obviously, we will come back to you with more news, with a new place for the new rollout. I'm gonna give the floor to Vicente, and he's gonna talk about the recovery of the sales of the assets.
Antonio. Hi, this is Vicente. Several malls presented growth in sales because of the change of the mix. The Tamboré is a highlight where we did a redevelopment that is important, and it brought not only profitability, but also more sales and a quality mix. Del Rey is another highlight, with the growth of sales above two digits, very much focused in the improvement of the mix, improvement of the food and beverage, increase in the fashion sales, and this is a bit of what we commented all throughout the call.
The challenges of a flagship leaving have to be converted into opportunities of better quality satellites, more sales, and more profitability for us. So I believe that these two examples, where Bauru was commented in a previous question, it was a highlight due to an improvement of the mix with the fashion, Farm, Vivara, Life. I mean, series of brands that are important, that brought more profitability, more sales, naturally improving the experience of the customer.
Thank you. A follow-up, Vicente, in regards to the mix work, do you still have a lot of space? Are there... You have many assets in the portfolio, you have a lot of space, or are you close to the end in this sense?
That work is never ending. What happens is that it transforms all throughout time. So from some years to now, that movement of more food and beverages, it happens, and it's still happening. There is still a lot of space for offering the restaurant and gastronomy offering. There is services and convenience, a segment that grows above average, and that also has a lot of opportunities in several malls for us to improve.
When we look, eventually, electronics suffering more, you know, other stuff suffering because of interest rates, we have new opportunities in segments that are very important for our business, such as food, entertainment, leisure, convenience, that are areas where we still can advance, and where we have opportunities of having a better experience for the client, but also increasing the profitability of the assets.
Thank you. Along those lines and complementing, we just launched an expansion, as we said in the call, in Campo Limpo, which is a neighborhood of São Paulo, which is typically, middle class, B and C. And if you see the performance, and I suggest that those that like to understand the details, the performance of middle class in Brazil.
Y ou can see how the performance of the mall is gonna be up ahead, because, in fact, it completed the experience of the consumer there with the addition of new operations and brands that are well-known, Kopenhagen, Vivara, that got into the mall now, in an area that was a parking lot area. So it will be something important, so we can understand why the brands that are more premium are migrating for these markets, and why we have increased the transaction with it, with this partner. I suggest that you follow up.
We have a Smart Fit gym, also in Campo Limpo, and other operations that are very nice. Even Renner, I believe that it was the only mall that didn't have Renner, so we completed the portfolio, and we're very proud of that. I wanted to also close here and thank you all, and we will see you over the next call. Thank you for the presentation. Thank you for your interest, and we will see you over the next call.
Thank you very much. The earnings call of the third quarter of 2023 of ALLOS is closed. You may disconnect. Have a nice afternoon.