Welcome, and thank you for waiting. Welcome to the earnings call of ALLOS for the discussion of the results of the third quarter of 2026. We have here Mr. Rafael Sales, President, Vicente Avellar, Director of Operations, and Ms. Daniella Guanabara, Financial Director and Investor Relations. This event is being recorded. All participants are just listening. Thereafter, we are going to start with a Q&A session just for analysts and investors. You will receive additional instructions. This event is transmitted via webcast and can be accessed on the webpage of ALLOS, and you will find the presentation there. The replay of this event will be available after the close for one week. Questions can only be asked through the Zoom app. Should you be connected via the webcast, submit your question directly to the IR team via email.
Before continuing, any forward-looking statements that are done during the earnings call regarding to the business perspectives of the company, projections, and operational goals and financial goals are based on beliefs of the board of directors, based on information that is currently available. Forward-looking statements are not guarantees of performance. They involve risks and uncertainties and premises. They refer to forward-looking statements and depend on circumstances that may or may not occur. Investors should know that general economic conditions, industry conditions, and other operational factors can affect the future performance of the company and may lead to results that are materially different from those expressed in the forward-looking statements. Now, let us give the floor to Mr. Rafael Sales, who will start the presentation. Please, the floor is yours.
Good morning. Thank you for your interest in the results of ALLOS. There was an acceleration in our results in this quarter with the combination of the growth of the revenues and the control of expenses and the control of budget and the real estate development that led to the EBITDA and FFO growing above 10%. Slide two. We can see that on the third quarter, the sales in our shopping malls grew 4% in regards to the same quarter last year, BRL 10 billion in the quarter. Same-store sales grew 2.7%.
Let us see the convenience, services, and leisure. Same-store sales over 10%. This performance shows the strength of our shopping malls and how we are positioned as a main destination for purchasing and experiences in each of the markets. Important data, September. Growth of sales was about 6%, stronger than what we have seen in the second quarter of this year. Next slide. Let us see the results of the quarter, a snapshot.
Revenue, BRL 776 million, growth of 18% over the same period of last year, pushed by the media and real estate verticals. Rent, same-store rent, grew 5.3%. W e can negotiate, negotiations with real interests. Combining the revenue, we get the EBITDA of BRL 580 million, a growth of margin that reached 74%. FFO added BRL 385 million, growth of 29%. Excluding the Shopping Tijuca, the EBITDA and FFO would be higher. We would get to 22%, 33%, respectively. These numbers reflect the numbers that are in the current portfolio, so we can perform resiliently in any scenario. Even though we are in a difficult period for the national economy, we have consistent results since the formation of ALLOS. Our results have been highlighted by the measures since the beginning of the year. We want to bring the consumers, and we want to be closer to the tenants.
More events and more activations. Focus is to grow in different scenarios. This context is of much work and much preparation. I congratulate the team that I believe that is exceptional. The company has organized not only in the operational side, but also the balance. That is why we have a new guidance of dividends, given the predictability of results of our cash generation and our strength of financing. That is well designed. Now, slide four. We can see that we are increasing the coverage of our shopping malls through the apps. The launches in Goiânia Shopping and Shopping Vila Velha. We are present in 39 malls, 24 cities, in all the regions of the country. Audience got to 18 million, a growth of 9%. GMV identified by the app reached BRL 1.4 billion, 90% advance in regards to the previous year.
In the Father's Day campaign, the GMV captured grew 14%, combined with a result of 39% of cost per capture. W e can activate the base of consumers in an ever more efficient way. Real estate development, slide five. We had great results. Shopping da Bahia, we launched a project in partnership, and with that, we have the first phase concluded of the partnership with Moura Dubeux. We have the GSV estimated BRL 350 million, Beach Class Bahia, and Beach Class Bahia will have a connection with a shopping mall, a residential tower, and we will have over 1,000 people living close to the shopping mall, Parque Dom Pedro. Signed with Tymber, new corporate tower. GSV estimated BRL 140 million, third tower hired in the master plan. Also, two commercial launches, mixed-use in Uberlândia, 281 apartments and 127 commercial units. Diamond Sky, Independência Shopping, 345 residential units.
At the end of the quarter, we have real estate projects that are 72 contracted towers, 750,000 sq m of private area. Of those, nine towers are delivered, 30 are under construction or launching, 33 under approval, and we should generate BRL 539 million to the company by 2036. Update on the portfolio movement. We just concluded on this quarter the transaction of exchange where we increased the participation in Shopping Campo Grande, 7.4%, and Shopping Pelotas, 5%, with a reduction of 8.7% in Shopping Taboão. Besides, we concluded the acquisition of 2.3% of Amazonas Shopping, and we concluded the participation in São Bernardo Plaza Shopping. Also, we have the ALLOS Fund, registry and offering in CVM, BRL 600 million captured to BRL 1 billion. As the market conditions allow, the market will be informed by the fund. We have a new guidance for the year 2027.
After concluding the year of 2026, paying about BRL 0.30, we should repeat the proceeds to the shareholders for the next year, about BRL 0.28, BRL 0.30 of real per share per year, getting an efficient level of leverage. Regardless of the scenario of interest rates that we see, the company is in an easy position to reinforce the guidance and repeat the level of return per share that we should expect and what we delivered this year. Now, Daniella and I will come back to the Q&A. Thank you.
Thank you, Rafael. Good morning. Commercial highlights and operational highlights. We closed the quarter with occupancy rate of 95.2%, reflecting the evolution of 16 stores. We have the electronics and all the stores involved, they have new contracts or in negotiations post Chapter 11. Our stock of approval proposals was 174 at the end of the third quarter of 2026, 52 new proposals at the end of the third quarter of 2025. Those data show that there is a consistent demand by our commercial spaces. In the quarter, we signed 283 new allocation contracts, 40,000 sq m of ABL.
Highlights, H&M, Shopping Tamboré, Sephora at Shopping Iguatemi and the increase in Shopping Leblon. We have Shopping Leblon and Shopping da Bahia with new restaurants. We have the cost of occupancy 10.6% and delinquency net low threshold, closing the quarter with 0.9%, aligned with the third quarter of 2025. Revenues of media continue to gain traction. BRL 82.4 million, increase of 44% in regards to the third quarter of 2025. Another quarter that keeps the representative of 10% of the gross revenue of the company.
In the quarter, helloo is consolidated as the multimodal out-of-home platform, getting to 12 airports in August of 2026. W e offer to the market 66 million impacts per year, 7,000 faces for marketing and promotion areas in the airports. We have the commitment for the continuous efficiency, 3Q 2026 SG&A. We went back 5% in regard to the third quarter of 2025. In the accumulated, the drop of SG&A is 8.2%. This is a process that was incorporated to the culture of ALLOS, always preserving excellence in the conditions of our business. The average rate of financing of the companies are still stable, and we keep the spread of CDI aligned with the previous quarter.
That is the result of the several actions of the liability management that we've done, including the emissions of a credit of BRL 1 billion below the CDI with distributed endings in five, seven, 10 years. The profile of the debts, 98.3% index to CDI, 1.7 prefixed with the leverage stable, controlled in 1.8x net debt over EBITDA, even with a payment of BRL 1.2 billion in dividends and interest over capital in 2026. Thank you for your interest. Now, the Q&A session.
Let's start the Q&A session. Should you have any question, please click on the button, raise your hand. To remove the question, please click on the button, drop your hand. Let's wait for the questions. Next question. BTG Pactual, Gustavo Fabris.
Good morning. Two points. You just announced for 2027 the dividend, but my doubt is, do you think that even though this is early on, the sustainability for the dividend level for 2028, looking at the leverage of two times, thinking that 2027, correct me if I'm wrong, can be a year also challenging for the M&As in the cost of capital scenario that is more restrictive? That's the first question for the dividends of 2028.
The second, I think that the real estate, we're going to have a scenario that it will be complicated. The leverage of the families and the retail will be high. How do you see the portfolio of ALLOS positioned for a macro scenario that is difficult? Trying to give a parallel between what you see ALLOS today versus what is in the separated company, comparing when we had the crisis that was more important in regards to mix of tenants, localization. If you can give us your two cents.
Hello, Gustavo. Thank you for your questions. From 2018 to now, the three companies added, Aliansce, Sonae, and brMalls would have 76, 73 malls. We are talking about that the current company is about 30 malls, comparing to the portfolio before. Besides becoming a bigger company, much more efficient, much more relevant, shopping malls that were in the portfolio are the ones that we chose. You can see a point that is important of the result. The strong performance of the northern region clearly is a dominant player. Last competition.
Our business is a local business, and it depends on the national strength to lever. We managed to do this very well with the integration of the two companies and with the redesign of the portfolio, so we can be ready to have more resilient results with more growth. Given that now we have the main places of leisure, purchasing, and leisure for the families in each of the markets that we work with. This thesis was well implemented, and we see it bearing fruits of this execution in regards to results. If you see these malls with our current portfolio, without the weight of the shopping malls that we had to dilute or do a result to keep the tenants, we tend to perform better. We had a few moments of testing. The pandemic was a great moment for that. Let's compare the recoveries.
These are shopping malls that really had a highlight. There are extraordinary cases, Cuiabá, Passeio das Águas, shopping malls that went through the pandemic, and now they are almost double of what they were. Shopping Leblon, we purchased, and now the result is double of the value that we purchased in terms of NOI. There are a few interesting examples, and they prove this perspective. Now, obviously, we do not know what will be the scenario, specific scenario, of the potential deceleration of the economy from the standpoint of the occupation. Certainly, we invested a lot of that in the, not only post-fusion, but before the fusion, the companies had invested in their current assets, developing areas. CapEx is a bit higher, so we have a CapEx that is stronger. Since 2026, we have been reducing, and we want to have this better product for the consumer.
We are prepared to navigate this scenario. We are going to have the shopping malls for the consumers to continue to see. Regards to the politics of dividends, our policy is what is in the statute, the bylaws. What we have done is a guidance. Given the strong balance, we want to give an annual guidance, and that is why the board has approved that guidance in 2027. I believe that this is a great predictability, given that this is a country with so many uncertainties.
I don't give any guidance outside of 2027, 2028. Any analyst can do the math and see their projections, thinking what is reasonable and what is possible. At the right moment, we will deliberate, given the scenario and the conditions that are present now. As you said, there could be opportunities for investment, disinvestments, generating decisions that can have an impact in dividends or up and down.
This will vary according to the years. C onsidering the structure of the company, the potential of growth and investment, I will say that we are going to be a great payer of dividends if it is the same threshold of BRL 0.30 . I cannot give any indication. Naturally, our company will be a great payer of dividends because structurally, that is one of the objectives that we have when we build ALLOS, that even though we sold all the shopping malls, it is still very relevant, much higher than the other players in the number of malls and operational results. T hat is the idea. We are well-prepared, and we tend to be a good payer of dividends. That is a conclusion.
Thank you. Next question. Ana Júlia Zerkowski, UBS. Floor is yours.
Hello. Good morning. Thank you. Our main doubt in regards to the fund, starting by all this, if something changed since the election, if there is any news, if the conclusion should occur in December, what can delay that conclusion for 2027? And still in this topic, thinking about a scenario if the fund does not move on, how can we think still about the guidance of dividends for 2027? Is there any changes or no? They are dependent factors. W hat can be the Kinea fund, what could drive a potential change in the guidance of dividends for 2027? Thinking about interest rates going up, macro scenario getting challenging, do you still feel comfortable with this leverage in the two networks? That is it.
Ana Júlia, thank you for your question. The Kinea fund, Kinea ALLOS Malls FII, was registered. This registry is six months for the process of distribution, very broad, different from the equity market. W e will wait for the right moment, so we can market and do the distribution of the fund. Of course, we are going to wait for the adequate moment. We even opened for this. Until then, we should have a clear scenario, both of fiscal policy and the expectation of interests. There should be time to decide.
Dividends. What we reported in the guidance is independent of the Kinea fund because this fund, as you know, it has a risk of capture, can change in size. The idea is to launch the fund with a new product, with a new business for ALLOS, and a way of flexibilizing the capital allocation. With this, thinking about the long term, not necessarily short term for the dividend of 2026, 2027.
O ne thing does not affect the other. With the current level of interest rates, the perspective that is in the markets, it is natural that we see the risk of not paying the dividend because with the higher interest rates, it does not make a lot of sense for us to do more investments. T here is some cash flow, and we do not have important deadlines for the next years, so we prepared the balance for that. We are always a bit more cautious.
In the election year, we reprofiled the debt profile so we can have more time and have more tranquility of this time. That is why we are indicating this dividend, which is something that we understand it does not have any risk for the company, obviously. In a change in the scenario, we will change. Nobody will be tied down to a decision if the scenario changes in a radical way, but we prepared the company for several scenarios. Lower growth, higher interest rates.
Thank you. Matheus Meloni, Santander.
Good morning. Two questions. I wanted to understand, you commented on sales, 6%, but I want to understand, how do you see the sales in October? What is the expectation for Black Friday, Christmas? Positive? My question is more about the tax reform. We've heard discussions on the delay for the implementation of 2028. Trying to understand how you've discussed with the associations and the lawyers to understand that issue of the chance of this reform being delayed. Thank you.
Hi, Matheus. As you said, there is a trend in the second and third quarter. July was a bit weaker, August improved, and September was the best month. Followed, as we commented, with entertaining and leisure and restaurant. There is a concentration of good movies, which helped with parking as well. Looking at October, specifically the two weekends of the election impacted a bit, but after the election, we see a recovery, very strong. Positive closing in October.
Same trend of the year as Rafa said. We have a portfolio that is extremely resilient. We see that depending on the quarter, different segments are a highlight, but as a result of the work of mix that we do. As we get into the shopping mall, the segments that have more adherence for the consumer, we see the performance improving. In a challenging scenario, we managed to get very good results. Regards to the tax reform, we are not working today with the possibility of delaying because if the reform is kept, we have to be ready anyhow. We try to see all the spaces that the Receita Federal give us. We are also advancing in our IT area to make our systems adequate so we can be necessary to issue the invoice. We do not delay because effectively, we need this.
Thank you. Next question. Ygor Altero, XP Investimentos.
Good morning. Thank you for the presentation. Two points on our side. I want to understand how is your mindset for the interest rates that are higher for capital allocation? Does it make sense to keep this strategy of a controlled CapEx within the scenario, understanding what are the main avenues of growth. Second question, regarding helloo. What can we expect of growth for helloo for the next years?
Hello, Ygor. Good morning. We had the candles adjusted for the scenario that is now, the scenario Brazil. We were ready for that. High interest rates, lower growth. CapEx is done within what we understand the priorities are. We have nice projects. A few networks will be developed and delivered this year. We still are going to have some deliverables until the summer, and everyone with good occupancy. There are interesting projects to be done. There are markets that we have opportunities, even seizing areas that we were developed that were interesting products.
We're always going to have some CapEx because it's going to be positive returns, even with the scenarios of high interest rates. I don't expect that growth, CapEx, in the next scenarios. We didn't review the budget. We're still defining, and when we report the guidance of EBITDA and CapEx, we are going to be more precise. I don't foresee either a drop or a big increase of CapEx for the next years. I am going to let Vicente talk about helloo, and then we can come back.
Good morning. Talking about helloo, we have a perspective that is positive for the growth of helloo for the next years. The perspective is given in the market. In a general sense, out-of-home, as part of the marketing, is a vertical that grows. There is good migration of revenues from other types of vehicles for out-of-home. Within out-of-home, we are in verticals that have a potential of growth. We could increase the participation in shopping malls. We grew in the home vertical, which is residential, and also vertical in the airport. We realize that there is still a lot of opportunities in the next years. Our perspective is still positive in these lines, and with a view that they should gain share within the total revenues of the company.
Thank you, Ygor. Next question, Bradesco BBI .
Thank you for the opportunity. We have the media revenue and digital. It is a growth vehicle, ever more relevant in the consolidated results. I wanted to understand your reading in regards to new paying players. Focus Media, the Chinese company that is in the digital area, is there something that can bother you? Second point, delinquency. Delinquency went a half percent. That is Tijuca 0.9, so we see that this is heavy. What is your negotiation due to the stoppage when the shopping mall goes back to normal?
Hello, this is Vicente. Thank you for the questions. About the media revenue and the entry of potential competitors in this environment, believe this is something natural. As I told Ygor, this is a revenue that we see a possibility of growth, especially in the towers, as you commented. We have very little potential, and this is a vertical that in Brazil there is still a lot of potential to grow. Naturally, we will monitor any competitor that is arriving in the environment. I t is something natural and something we will follow, and we will advance.
In regards to delinquency, we naturally will see the impact in Tijuca. We will see month by month, they are reducing. We have several same-store sales and sales that are positive. In the segments within Tijuca, as we have shown in the previous quarter, the opening of Taste Lab was a great engine for the recovery of the mall, now in the middle of the year. Recently, we had in October, the opening of Renner, Centauro.
These were stores that were impacted by the incidents, and they were closed until now. T hey help in the recurrence Bodytech, the gym, also an important engine of recovery for the shopping mall. A ll of that will make the shopping mall go back to normal. W e have consistent growth over the quarters in the shopping mall. This is a pinpoint fact that naturally we will monitor and give attention, but we are not concerned.
Thank you. Next question, André Mazini, Citi.
Hello, everyone. Thank you for the questions. First, the recognition of BRL 50 million in a quarter, what is the visibility for new recognitions that we might have along these lines? What is the impact in EBITDA and FFO with the recurrence? And with high interest rates, is it possible to keep this as good as it was in this quarter?
There is a lot of things have contracted. Can we keep it at this threshold? The second one, about the 100 basis points of occupancy rate because of the [inaudible], what is the schedule? There is a lot of things in negotiation. Is the idea keeping things broad as the retailer, or are you going to make this space available and the rent can go up? What is the idea? Thank you.
Thank you, Mazini. The first question is extremely important. One of the fronts that we prepared the company for in the last three, four years, which is this process of development of real estate, it has to become a recurrent business in the company, given that there is so much land bank, and not only the current land bank, but also generation of land bank with the transformation of legislation.
We've rotten because of the change in legislation. Now in Campinas, we also managed to increase due to a favorable interpretation of the legislation. All of that is evolving. The 15-minute city concept that is getting in the minds of the public policy of the cities, favoring so that we have very well-organized areas, which is the case of the shopping mall. We have an approval process of projects, and we have a pipeline that is relevant. Some under approval and others under negotiation, but the recognition of revenue is not as linear as a result. Doors are undergoing, the sales are happening, but we recognize the revenue in points in regards to contractual issues. That's why in accounting, they go quarter- by- quarter. Sales are undergoing. We have three towers in North Shopping, three in Campinas being implemented, two in Shopping da Bahia, several projects undergoing.
It's a recurring business for us. We announced three or four in this call, new ones, Independência, and several shopping malls being developed. The recognition tends to be non-linear, but relevant. This year is BRL 90 million recognized, and having a good objective so we can run the company at BRL 100 million per year, so we can get to this. This is what we imagined in the pipeline that we have always choosing the right partners that are specialists in every product so we can develop and execute the master plan that we developed. On the commercial part, I'm going to ask Renato Floh of getting into the call and explaining the strategy.
Thank you for the question. I think this movement that happened of this retailer with 16 closing in the shopping malls reinforces the resilience of our portfolio. As we said, we have an important relevant evolution that made us have up until now of the 16 contracts, the cases with a contract that is with proposals that are approved. The speed that we could do this work really reinforces the strength of the portfolio.
Besides, regarding the second point, you asked about the segments. Are we satellizing? This is part of a planning that we have mall by mall. Some cases, we are really getting satellites. Others, we are opening spaces for international brands to get in. Others, we are looking at what would be more adherent for the mix of every shopping mall. We are comfortable even with a challenging scenario for the economy, and what happened with these 16 stores reinforces this.
Thank you. Next question, Victor Tapia, Bank of America. Floor is yours.
Good morning, everyone. Point that I wanted to discuss is about the issue of the new revenue for development. From what I understand is when in a managerial way, it was the exchange for the project of the Shopping da Bahia, where you received or you will receive the units ready and built. The first question is, what is the idea? What do you intend to do with these units? From what I understand, I don't know if it's withholding this for rent, and if you sell, who's going to work that sale? Is it your partner? The cost of selling that is in a price. It's a bit more color in that sense.
You've discussed about a potential growth along these lines of revenue. The business model will be case by case. Will you try to monetize this exchange? These projects always via exchange or will be via cash? The other point. There was the change in the lifetime of the assets in this quarter. T his is your understanding that is the maximum limit for the review, or is there a space to gain more lifespan in the assets?
Good morning. Thank you for your question. Our real estate business model is recapping the strategy so we can be clear. We develop the real estate around the shopping malls. We evaluate the building potential. We evaluate what is the end for this market that would benefit the shopping mall in terms of flow, management, qualification of mix, income of the consumer, and profile of clients so we can help with the performance of the shopping mall. This is the main driver of the conception of the project. Once we have this master plan, we try to find partners, specialists in every type of product that we have.
Usually regional, also have partnerships with national, partnerships with Cyrela, but a lot of local partnerships that are specialists. W e do exchanges. Most of these are financed, and they guarantee a minimum return, some of an initial investment, and there is an upside in physical exchange where we will receive units that will be sold along with the selling with the real estate company. W e don't have an incorporation business. This is not our interest. We still have the concept and the monitoring and the management, so to speak, that the works are under the direction that we want, but with the smallest risk of incorporation possible. Understand that this is not our business.
The specialist local player knows the market, so they're going to know the speed of sales of product, and when there is the issue of the upsides. We sell along with them in the rhythm of the selling with the partner. This is agreed that the units are with the same rules of incentive, same incentives, and the partner has also an incentive to maximize this, because it decreases the pressure of selling for us. This is how we should continue. I don't have any perspective of changing this standard of developing this way with these partners and with this model, always favoring the financial exchange and always having some type of upside in price or in volume, or receiving an exchange when it's necessary to make the project viable. I'm going to give the floor to Daniella so she can talk about the accounting.
Hello. Good morning. Thank you for the question. As you know, our shopping mall business is long-term. When we think about the depreciation period, 45 years, it effectively in practice is being surpassed by the older shopping malls in Brazil. We had the investments through the years. We expect that they are going to be there for another 50 years, so it makes sense. We did the review for all the assets of the portfolio, even though we did this movement. In the other fusions, we did it again. By accounting norm, you have to reevaluate the lifespan of the asset, but we do not expect to do it every year. This process was concluded now, and will impact in the second half of the year, and it is going to have an impact in the future.
Follow-up on the first question. I t is clear, it is more of a financial exchange and especially a physical, but then the partner that works the sale and the units get in the as if it is the units that they can sell. Can you give us an idea of the pipeline of what would be for 2027? What can we expect for this line of 2027?
Victor, in terms of recognition of revenue, really depends on the launch, the approval of the municipalities. That is why we can concentrate in a quarter. We are running this year BRL 90 million. There should be another thing to get in in the year. We want to aim running at this level and increasing this level over the next years. There is no way that there is going to be a big acceleration because the projects are going to have a time of maturation launching.
What is important is to know that we have 4 million, 5 million of building potential. Some of this potential can even grow with the improvement of the legislation of your cities and the transformation, for example, for residential or hospitals or hotels. It is according to the demand of the market, and it can accelerate or not the economy. Now, we are working with this range, transforming this BRL 540 million that we have now, subtracted. We want them to anticipate, and also having more money in this pool, more projects in this pool. The idea is to be in this threshold in this time, and running at this threshold is a nice number. BRL 90 million, BRL 100 million is a good number for us to work as an objective.
Understood. Thank you.
Jonathan Koutras, next question, JP Morgan.
Good morning, Rafa, the team. Thank you for the space for the quarter. I just have a question on my side about the guidance of CapEx. For the third quarter, you can be close to the low of the band, so I just want to understand if that makes sense. If it is BRL 98 million, there is the acquisitions, but you should have an acceleration in the fourth quarter that we did not have this year. I just want to understand, how do you see the guidance?
Jonathan, thank you for your question. I believe that we are going to be within the guidance. I do not foresee that we are going to be low on the guidance because in the fourth quarter, there is always an acceleration for the recognition of the expenses, the works, and the execution. We want to launch a bunch of things for Christmas. October and November, the works accelerate, so we have a tendency to be within the guidance. We will be within the guidance. The issue is, do we know exactly where we are going to execute? There is always a bit of a delay with the works. T he guidance, being with the guidance, is good of what we can expect of capital. No surprises.
Thank you. Next question is Rafael Rehder, Safra. The floor is yours.
Good morning. Thank you for the space, I have a question. I wanted to see how you see the impact of the end of the escala 6x1 in condominium costs, and do you have, do you believe that there is still an idea to reduce the condominium cost to better absorb this potential impact in the cost?
Hi, Rafael. Good morning. Thank you for the question. We are studying this with the partners. It is an important part of the cost of condominium with the subcontractor companies, many of them, the works, so that ends up We end up having to see where there is a big impact in that sense. The good news is that when you get the lines that will have most of this impact, which is cleaning, maintenance, where you have more people, you have a very limited impact with the total cost of the condominium.
W e understand that, yes, there will be an impact, but this is a limited impact that we will be able to navigate within the actions of efficiency that we are implementing. N aturally, we are in the middle of this process of understanding where we are going to get those efficiencies, what are the improvements that we can do. Some of them are being implemented so we can achieve and absorb this impact. We do not see anything material thus far affecting our capacity of adjusting the rent.
Thank you. Next question, Elvis Credendio, Itaú BBA. Please.
Good morning, everyone. A few topics here on, first about the health of the real estate. W e have the economic activity, the end of the escala affecting the I wanted to understand on your side, on your conversations, both of those that are in the portfolio or some that are in the negotiation that is evolving, do you feel more requests for concessions? Do you see new interest for new areas, or is there any concern for delinquency? The last topic is on the side of SG&A. The control of G&A really called our attention and helped to contribute with the results, and I wanted to understand on your side if there is a big movement or is there still any space for a bit more efficiency?
Thank you. Elvis, thank you for your question. I am going to start by the second, and then I will give the floor. The process of gains of efficiency is a process that never ends. We will continue to advance both through the tech evolution using AI, which has been extremely important in this process of not increasing teams. O nce we did the reduction of last year, we should use that from the standpoint of in the support areas to reduce the expenses and also improving life for the consumers, being more assertive in their connection with the tenants, which makes you generating less expenses.
And in the case of the app, I mentioned in the call and in the release that we had an increase of utilization of the app, very relevant, an increase of capture of sales, and a drop of 39% in the cost of capture of the sale. That has to do with the use of AI, artificial intelligence, on our app, and that, besides having more participation of the tenants giving awards for our benefits program. T here are several sources of efficiency, which is not just a reduction of structure, because we did a reduction of structure, so this part is already done, and then we have the gains of being cautious in the expenses. Careful with the expenses because it's healthy for the company to be able to do this well, our role. Serving well with our operation, and this is a trend, global trend.
Now we see the use of technology is arriving with a lot of focus of being more efficient, more productive. Productivity tends to be a driver of value for the countries and for the economies in general. W e have to be very prepared and looking at this with a lot of attention. I think that a nominal drop of 10%, as in the previous quarter, 5%, obviously, it's more difficult. W e've seen companies that went through this process post-fusion that could do this gradually, these gains of efficiency, and we intend on doing so. We want to grow less than the inflation, trying to reduce whenever possible, but always trying to achieve gains and doing the operation as productive as possible.
With the relationship of tenants, Elvis, in regards to the tenants, we don't see any behavior that is different from what we've seen. The numbers, they demonstrate that delinquency is under control. W hen we look ahead, both at the movement that we discussed about the closing of the real estate retailer in Rio de Janeiro and the opportunities that we have for the commercial speed of new signatures of contracts are positive. If we look today, 184 opportunities that have proposals approved or the contract is under signature. This is 52 proposals above last year, and we see this relationship even higher. U p until the moment, we saw that there is no impact, and even in a certain way, we have a buffer looking ahead.
Thank you, Elvis. Thank you for your questions. Last question, Igor Machado, Goldman Sachs. Please.
Good morning, everyone. Thank you for the opportunity. Two points on our side. Two follow-ups. T he first one is in regards to the dividends. I understand the funding of this guidance. T he beginning of funding. T he expectation is that the FFO will cover the dividends, and if this is the case, for how long would you expect this? Second point would be to confirm in regards to the metrics of allocation. You mentioned that the guidance of dividends doesn't depend on the fund of Kinea, but I want to understand if this leverage goal in two times consider selling of assets. Thank you.
Thank you, Igor. In terms of dividends, as I discussed, guidance is only worth for 2027, which is an attitude of transparency that is very differentiated for our company in regards to other companies in general, because of our predictability of results. The sustainability for the cash generation is demonstrated. We've generated a cash flow. We have converted this EBITDA in cash flow in a very consistent way, and we had an expressive drop comparing to what was the government with the base rate and the companies separately.
These two factors give us comfort, and the refinancing of the debt that is up until 10 years is something new for the company in regards to what was before. All of those synergies for the creation of ALLOS are reflected as well in this possibility of a higher dividend that the guidance is for 2027, and the potential for cash generation is being ever more clear, and that is why we can keep this type of process of distribution and be a good payer of dividends based on this. The precise number will be given once a year and will be given in the time, will be adequate according to the circumstances.
Having said that, we just want to model the cash generation. Today, we do not expect to pay dividends and to keep the level of leverage of the company. We are planning that, but just with the receiving of the disinvestments already done is natural that some are in installments, some are in quotas. There is this process of transforming these assets in liquidity. This is already occurring. These are assets that we generate income that are going to be higher or less, so we need to manage that in a way that the financial team recommends. Thank you.
Thank you. If we do not have any more questions, I would like to give the floor to Mr. Rafael Sales for his final statements.
Thank you all for the interest in the results of ALLOS. I wanted to thank the team of all of our shopping malls, of all of our verticals, all of our offices that did an exceptional work. The results reflect what we planted over the last three, four years. It is a moment that we would like to thank you for all of your efforts. Thank you very much to all the investors, and the team is here available for all follow-ups.
Thank you. Earnings call of the results of the third quarter of 2026 of ALLOS is closed. Thank you for your participation. Have a nice day.