Good morning. Thank you for holding. Welcome to the Iguatemi S.A. earnings conference call to discuss the results for the second quarter 2026. Present with us today are Ciro Neto, Chief Executive Officer, and Mr. Guido Oliveira, Vice President of Finance and Investor Relations Officer. We would like to inform you that this event is being recorded, and all participants will be in listen-only mode during Iguatemi's presentation.
Ensuing this, we will begin the question and answer session when further instructions will be provided. The presentation is available for download at ri.iguatemi.com.br. Before proceeding, we would like to clarify that any statements that may be made during the conference call regarding Iguatemi's business prospects, projections, and operational and financial targets are the beliefs and assumptions of the company's management, as well as information currently available. Forward-looking statements are not guarantees of performance.
They involve risks, uncertainties, and assumptions as they refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that overall economic conditions, industry conditions, and other operating factors may affect Iguatemi's future performance and lead to results that differ materially from those expressed in such forward-looking statements. I would now like to turn the floor over to Mr. Ciro Neto, who will begin the presentation. You may proceed.
Good morning, everybody. It's wonderful to be with you once again to speak about our second quarter results. We reached sales of BRL 6.6 billion, a growth of 4.6% vis-à-vis the same period last year, a performance that reaffirms the strength of our assets, the quality of our mix, and the ability that Iguatemi has of continuing with growth in a challenging environment.
With the FIFA World Cup, we had more games this year, an attractive period, a very family event. Many of our customers traveled, but despite this, we did attain a growth of 4.6%. It's also worth highlighting that the growth of sales per square meter was of more than 13%, robust growth, reflecting our strategy of allocating capital in assets with greater productivity.
After the FIFA World Cup, we had sales returning to their formal level, and the flow of vehicles in the malls also returned to the levels before the World Cup. Now, if we look at our rentals, we have a very balanced operation. Same-area rent reaching 2.2%. The participation of Iguatemi rental per square meter was 11.8%, reflecting the strategy of investing in assets with greater productivity. Occupancy rate at a healthy level, 10.8%, preserving the operation of our tenants.
We ended the quarter looking at the occupancy rate rising to 96.9%, a result that reinforces how attractive our ventures are. We had the arrival of H&M at RioSul, as well as other malls, a full success. The arrival of Zara, Carolina Herrera, and Birkenstock signing a contract in Iguatemi Campinas, and Ara Vartanian, and Dominique, also Maison Dior reaching JK, one of the main luxury brands, showing the confidence of the brand in the competition of our assets.
We also inaugurated H&M in the RioSul Mall, absolute success in Rio de Janeiro. We changed operations that were selling a certain amount and were selling sixfold in that space, presently concentrating the sales in Rio de Janeiro. This is the first H&M store in Rio de Janeiro, a door of entry to other international and domestic brands.
International brands continue to have that desire to come to Brazil, expanding with us. This is their greatest challenge, and we deliver a performance above average for that segment. This reinforces that Iguatemi is the door of entry for relevant brands in the markets where we are active. Let's speak about capital recycling, comparing the second quarter 2025, second quarter of 2026. We had stake changes in nine assets, an active management of our portfolio.
We had an increase of stake in strategic assets, relocating capital to projects with higher productivity. We have Pátio Higienópolis, Pátio Paulista, RIOSUL, raising the quality of our portfolio and strengthening our ability to obtain good results in the long term. I said this in the first quarter, when we think of the Main 15 malls in terms of revenue, we have six of those. Iguatemi is in the first place.
We have Iguatemi São Paulo, and JK. Iguatemi is double than the third runner. Our capital allocation has been ever more intelligent. Once again, we invest in projects with higher productivity, obtaining higher productivity in our rentals. Let's look at our consequences, the results of this strategy. Adjusted EBITDA reached BRL 1.78 billion since 2022, with a CAGR of more than 18%, reflecting the evolution of our rentals and the greater efficiency of our assets.
The graph that I show you here on slide six. I would like to show you the status of development of our expansion projects. We continue to move forward in our main initiatives. We have the rooftop of Iguatemi São Paulo, and Iguatemi Brasília. Incredible projects with real estate development that is very strong.
Here we see Iguatemi Campinas, where we began the works of our Iguatemi tower and the first phase of infrastructure of the Casa Figueira neighborhood. We will be delivering this work at the end of the year. These developments continue to evolve. We have Tower A and the advance of expansions, and we will invest continuously in the advance of our assets.
On slide number eight, let's look at our experiences, culture, and ESG commitment. Events are an important differential of Iguatemi when it comes to our customers. We have new initiatives reinforcing that our assets are the center of experiences and culture. We held the first Iguatemi Talks Wellness with both national and international experts debating quality of life. This had a huge repercussion. We had more than 2 million people.
We also launched Brasil Contemporâneo in Iguatemi Theater with Fernando Schuler to speak about challenges and opportunities of Brazil vis-à-vis global changes. This was sold out in all of the editions. Several people seeking us out to be able to participate to speak about the future of our country. We're strengthening our calendar of proprietary events. For example, Cine Vista in JK, Arraial Shopping Rio Sul, Pátio Gourmet, with the help of Bradesco Principal.
Every year, we create very attractive proprietary events that are attractive not only for customers but for the public at large. They're important in our results, and we will continue offering these differentiated experiences to our customers, a very unified portfolio, but also generating proprietary revenues and bringing this closer to our customers. In ESG, the main highlight is the publication of the fourth edition of sustainability report.
Among the highlights, we're moved forward in our decarbonizing effort. We're using 100% renewable energy in our operations. We're still in the ISE B3 Grade B in CDP and 94.3% approval of the Board of Directors. I will now turn the floor over to Guido. We ended the quarter with an ever more qualified portfolio, discipline in capital allocation, reinforcing our value in the long term. I will turn the floor over to Guido and will join you in the questions and answers.
Well, good morning, everybody. It's a pleasure to be with you in the second quarter 2026. In this table, you'll see a reduction of our own GLA. We had a sale that took place in the first quarter of 2026. We sold some assets with minority participations. This was disseminated in March of the first quarter.
In March, we acquired 3% of the Pátio Paulista as well. This led to a reduction of 2.8% in our own GLA, to 426,000 vis-à-vis 489,000. Our malls have 17 in total number. The total sales reaches BRL 6.5 billion, as mentioned before, 4.6% above the second quarter of 2025, and in the first six months, BRL 12.2 billion, growing 8.2%.
The same-area sales at about 5% in the first six months, and same-area sales for the second quarter 4.2%. Throughout the quarter, several malls have same area sales above 10%, especially Iguatemi, São Paulo, and JK, and sales of 10% for Iguatemi, 10.5% for JK, and 11% for others. Besides the impact of the mismatch of Easter in March, we also had the impact of the FIFA World Cup that we highlighted. We had an impact on sales.
They were 32% lower when compared with the day of the matches in Brazil in the previous year. We compared the day of the matches of Brazil with other days, and we had that drop of 32%. Were it not for this, our sales would have been 7% for June. Even if we consider that we had the effect of the traveling of our customers as this was a much larger World Cup, different from other World Cups, with a larger number of games.
The last World Cup was in Qatar, and this one, of course, held in the U.S., closer for our customers. As Ciro mentioned, as of June 15th, our sales returned to the levels pre-World Cup and traffic flow as well, with a large entertainment event with films such as "Spider-Man" and others, which are truly very successful at our movie theaters.
If we look at same-store range, same area range, 2.7%, 2.5% above the IGP-M. Even with lower sales, we show you the occupancy rate at 97% and the occupancy cost of 10.8%, net delinquency rate of 0.1%, and discount of 1% on rentals, one of the lowest discounts in the last few years if we think about 15 years ago. This shows you how healthy our portfolio is.
The best of the worlds for us is the rent per square meter. Our stake grew 13% in the second quarter 2026 vis-à-vis the second quarter 2025, and 12% in the six months vis-à-vis 2025, showing you the portfolio moves that we carried out in assets with better performance and productivity. Going on to the next page, we show you the effects of the financial effects adjusted by pro forma in the release and in the table that Ciro presented.
Since 2024, we had movements in 10 assets. Since last year, nine assets. We have Smart Place, Galleria Market Place per se, and the movements of Iguatemi Alphaville, Praia de Belas, Ribeirão Preto, and others. Besides what we had done last year of removing from our results the results of our partners because of the financial instrument that we used to purchase São Paulo, the CRI that was purchased in April 2025.
We paid off that CRI on June 20th, delivering the results to those partners. Our results were above EBITDA, and they came out in the financial results as interest for the CRI. Our recurring net revenue was BRL 396 million. If we take away the pro forma events, we got to BRL 354 million.
When compared with the second quarter of 2026, the growth is 11.6% in net revenue and EBITDA growth of 11%, in net income 21%, and in FFO 22%. In this table that we have included, we show you the conciliation of recurring and pro forma results. We went from the second quarter 2025, adjusted to the capital gain of Market Place Galleria and the result of our partners.
We went from BRL 445 of EBITDA to BRL 448, and between sales and purchases, we lost BRL 26 million in EBITDA. Between the EBITDA of BRL 270 and BRL 290 of the second quarter 2026 to the pro forma EBITDA, we had a growth of 10.8%. If we look at our metrics for minimum rentals, percentage of rentals, temporary rentals, parking rates, all with a growth of above 10%.
I highlight the retail market with excellent figures in the second quarter in same-store growing 15% and growing 25.8% in total sales with a strong impact of Birkenstock and Polo Ralph Lauren with very good performance in the second quarter. For the semester, the same effect. We grew with gross revenue, net revenue above 11% when we carry out adjustments for pro forma adjustment.
To go on to our balance. We get to a net debt of BRL 2.138 billion, an increase compared to March. In March, we carried out our sales. In the second quarter, we paid the parcel for RIOSUL. We paid out dividends. Our leverage, without taking into account capital gain, goes back to being 1.8 x.
We began this purchase and sale of asset operations in April, and we end this cycle with the sales of the first quarter with the same leverage, somewhat lower, perhaps, in the second quarter, with leverage standing of 1.8x. We have preserved leverage between 1.6x and 1.8 x in these last two years. The growth that we carried out by focusing on our main assets, our trophy assets, allows us to have a take rate of 8.38 on sales for the last 12 months.
We had lower sales this quarter, but we maintained the same take rate, losing a bit of overage because we had less sales from the international part because of the traveling of our customers to the World Cup. We have a healthy level of 8.3% growth. Sales per squar meter reaching 2,600 and some per square meter . This is the highest figure for the sector. Rentals reaching BRL 227 per square meter , the highest, once again, for the entire sector. With this, I would now open the floor for questions and answers. Thank you.
We will now go on to the answer and question session only for investors and analysts. Should you have a question, please click on the raise hand icon. If your question has been responded, you can withdraw by lowering your hand. Questions will be answered in the order in which they are received. Our first question is from Fanny Oreng from Santander.
Well, good morning, everybody. I have two questions at my end. A first question referring to sales. When you open up, you have a breakdown by category. What draws attention are home products and bookstores. Perhaps you could share with us what happened in that part specifically, if that refers to the World Cup, or is this a specific problem of a retailer? Perhaps you can share this with us.
The second question, have you begun the process of rentals for your expansions of rooftop São Paulo, rooftop Brasília? How do you look upon the issue of allowances? How will they evolve? We see some investors somewhat concerned because of the Multiplan application that showed more allowances. How do you consider this trend of the retailers? Are retailers more concerned with the economic scenario? I don't know if the demand is for the opening of new stores. Thank you very much.
Thank you, Fanny, for the question. If we look at home products, what we have seen in the market is a reduction in the size of those areas, if we look at Casas Bahia, for example. In our case, for example, we have always had a more premium brand such as Fast Shop.
There is a slowdown because of the problems you have all followed up on. There's an issue of inventory in those operations at this point. We do believe in a reduction that opens up an opportunity for reduction ourselves and opening up the GLA in those spaces as we did in Rio Sul. In Rio Sul, we had the operation of a home appliance store, and now we're selling six times more than that because of H&M.
Yes, we did focus on those operations, but as a next step, there is a reduction of spaces geared to those operators, offering us the opportunity for spaces with higher profitability. Well, we closed several operations, retail operations, in terms of GLA. I give you the example of Rio Sul. They closed Casas Bahia. We opened up H&M and are selling sixfold more.
Now, to go back to your second question, the issue of expansion. We're doing well in the negotiations of the rooftop in the fourth floor of Iguatemi São Paulo and the expansion of Iguatemi Brasília. We have allowances and the sale of points. Throughout this year, we had a movement that was somewhat lower in terms of sales points vis-a-vis last year. You can see this in other revenues, but we will recover this in the second half of the year. Several negotiations are ongoing.
In July, we just sold an important point in Iguatemi, São Paulo for Sisley. We see the metric of point sales doing very well, and we will have important figures in the third and fourth quarters. Regarding the allowances for new expansions, if we consider Brasília, Iguatemi, São Paulo, the negotiations are to resell the point and really not for allowances. We're at the same level we have always had.
There are no increases or sudden concerns. It's more of the same. Shopping malls that are weaker, H&M, for example, we negotiated five stores. We paid in only one mall. In the others, this was a sales point resale. It depends on the negotiation, but there's nothing out of normal in terms of our commercial negotiation. We have had a very balanced situation, offset by resale, we try to net the two.
There is a greater pressure in the market. Other operators who attempt to improve their portfolio are investing more to bring in these operations. In Iguatemi, these brands have to partner with us, and this reinforces our positioning. We charge for the sales point and don't offer allowances to all brands.
Thank you. That was very clear. If I could follow up on your sales, are there any retailers that have drawn attention, bringing the same-store sales down, in different product categories?
I believe this was the impact of the World Cup. We sold less in June because of the FIFA World Cup. Yes, everybody traveled and bought outside of Brazil. I don't know if they bought, but they were traveling. They were watching the World Cup matches.
We had an acceleration in international sales, I always said this was a structural moment because international brands are investing in Brazil. We are a door of entry into Brazil. We're working with Dior. These companies want to expand their spaces with us. Most of the brands in the last conversations I have had, when we compare Americas, United States, Canada, Mexico, and South America, our stores in Iguatemi and JK have the five best stores in performance in USD.
The calendar effect was very different compared to that of the previous World Cup. This was more of a family event, where you would take the entire family. For high-income customers, they do travel a lot. We saw that our customer was making the most of this family moment abroad. As soon as the World Cup ended, our sales sped up again in the last fortnight of June. This allows us the tranquility to know that we will go back to the same figures we have in terms of sales growth.
Thank you, Ciro. Thank you very much. Thank you, Guido.
We continue with Morgan Stanley, Mario Simplicio.
Good morning, everybody. Thank you for taking my question. First of all, which is your view of leasing spreads this year? If you could give us more color if one asset is performing better than others. The second question, the improvement after the World Cup. What is happening to your sales in July? Perhaps you could give us more color and speak about trends.
We have a lease spread above 10% for renewals. We're doing very well with spreads. In the last six months, we held high occupancy. Last month, we ended at 97.2, and for the quarter, 96.7. We had a higher churn in some satellites, but we have been recovering this in the second quarter with the hiring that we have already closed. The second question, if you could refresh me on that.
July sales.
Exactly. We saw a first fortnight suffering because of the World Cup. Well, in the last match of Brazil, we had the same impact that we saw in the first weeks of June. If we look at the vehicle flow, which is a sign, we recovered practically all the negative flow of the first fortnight in the second fortnight. The sales that dropped in the first fortnight, we recovered fully in the second fortnight. Sales came back strongly. The sales of July are positive, not high. If we look at the thermometer of the second fortnight, we see that the sales are normal vis-a-vis what happened before the World Cup. We have sales of 9%-10%. Thank you.
Thank you very much.
We continue with João Pedro Rodrigues from XP.
Good morning, everybody. Thank you for taking my question. I have two questions at my end. First of all, I would like to discuss with you the square meter. We look at the three states here, and we see that recently you have moved away from the main player in terms of revenues per square meter. I would like to gain an understanding of how you justify these changes. Is this the result of the new investments you made? Are there factors such as mixed management that you carried out during the quarter that will justify this change?
In the new assets in RioSul and Pátios, do you still have square meters where you can continue to maintain this leadership? That's the first question. My second question refers to the tax reform. Well, it's been some time since you have a framework to incorporate the clauses of the contract following the new tax reform.
Well, it's a view of a half-empty cup from the commercial viewpoint, the impact this could have on negotiations. How are your conversations going with tenants? Are the conversations getting better, and as 2027 comes closer, if you observe any pressure to offer discounts, perhaps, because of default or any other problem. Thank you.
Well, thank you. Now, if we look at the results of our revenue, there are some important factors. The first factor is our portfolio qualification. It has allowed us to speed up our performance per square meter. We have captured this, and we have increased this significantly. In the last quarters, the growth of overage has been quite strong. It's an expressive growth. It comes from that qualification, the performance of our assets.
The second point is our diligence in seeking additional revenue in square meter in same-store range stores. For several quarters, we have been offering higher figures in the renovations that we carry out. We analyze contract by contract. We have a smart table so that we can increase the lease spreads. An important factor is allocation of capital in our trophy assets, dominant assets, when it comes to square meter. What I said at the beginning, we have six malls among the most productive malls in sales, and sales is a consequence of the rentals that you are able to charge, increasing your revenue through time.
This is what we have been doing in the last two years, consolidating these assets. Two of these assets are in the ranking of the 15 malls. It is a sum of all of these factors, doing new things, creating an ecosystem where we could bring in additional revenues, media, sponsored events, our lounges that are up for rentals, Casa Higienópolis.
We have residences, the apartments in JK, for example, that have significant demand and important revenues in our deliveries. It is a blend. If we look at the second part of your question, if you look at the assets we have acquired, we still have great opportunities for growth and revenue in those malls. In Higienópolis, 30 some sq meters of GLA. It delivers NOI. RioSul has the same NOI among the last three that we acquired.
We have opportunities for growth in all three of these malls, and it begins with the movements we did before. We have H&M in RioSul, Birkenstock already showing growth. This will enable us to seek better rentals. We have signed more than 20 contracts in RioSul in the last six months, for example. Those malls are part of our process, and we see significant opportunities for growth there.
I would like to underscore the international part that is trying to enhance their footprint in Brazil. We see this in the negotiations of the rooftop and the expansion of Brasilia. Several international brands that do not operate in the country so far. Many spoke about the Zara Group. The greatest Zara player is in Iguatemi, between the Zara stores and Zara Home. We expanded Zara in Iguatemi, Campinas, and Brasilia as well.
We have a significant agenda with Zara for the coming months, and you will receive the news once they are newsworthy. The tax reform, we have been preparing for that since 2019. We review this quarter-on-quarter. We have a base of contracts of 80% with a clause where it states that rent is price.
Additionally to that, throughout the discussions of the tax reform and the PEC that created the Complementary Law for the tax reform, Article 255, which is Complementary Law No. 214/2025, states that the CBS is on gross rent. Legislation, in this case, shelters us, protects us. If we are able to pass this through to tenants, it is a discussion that is not foreseen in the legislation. Iguatemi, differently from other players, invoices through condominiums and consortiums, and condos and consortiums are exempt. They do not pay taxes.
The co-owners of Iguatemi in their malls where we do not have 100% stake, even if we have 100% stake, this is invoiced through our consortiums and condominiums. This idea that the taxes have to come out of your invoicing because you pay taxes on rent, no. We are exempt from paying taxes. If you are going to hold the discussion with tenants, I will give you an example.
We received an email from a tenant yesterday. He wants the rents beginning in January to be invoiced, including CBS and IBS. You have to remove your aliquot of taxes. We have already responded to them because we do not pay taxes. Our paying entity does not pay taxes. There are ongoing discussions. We have made it very clear that this is how we work. The CBS, that will be around 9%, will have a discount of about 70%.
We're not going to pass through 9%, we're going to pass through 3%. We also have to keep in mind that several of our operators still do not know. Well, some of the franchisees truly do not know our discount of 70% that will be scaled up, besides the Article 255 that says rent is price. Now, we need to explain to the tenants about the doubts that they have, and with most of them, we're quite comfortable in working with these necessary pass-throughs. Thank you.
Thank you very much for the explanations. Congratulations for your results.
We continue with the questions. Herman Lee from Bradesco BBI.
Thank you for taking our questions. We have two questions as well. What draws attention is the rent that grew 111% of Pátio Paulista in the first semester. Could you give us more color underlying this growth and the expansion of Iguatemi São Paulo? What have been your negotiations of rent vis-à-vis the rest of your portfolio, and what will happen with this new expansion?
Pátio Paulista, the growth of rents in Pátio Paulista reflects the movement that we have already carried out. We still have a great deal to do. We took on the management of Pátio Paulista last year. We acquired it in April but took on management only beginning in August, so there was that period of transition. We have been managing it for a year. The rental revenues grew 7%, and this reflects the new brands we have put in movement in the portfolio. Pátio Paulista and RIOSUL do not have valid parking, which is where we grow more.
The rents for parking are 2%, and in RIOSUL, because of the new brands, because of the inauguration of H&M, grew 20.5% in terms of parking. We're going to implement this in both parking places. We're going to implement valet, and we will have a significant growth in revenue. And in Pátio Paulista and RIOSUL, several novelties. We can't refer to them at present, but novelties that will drive the revenue, and this includes new brands coming into the mall.
Now, regarding the rooftop and expansions and negotiations, when we drew up the business plan for the expansion and the rooftop in the fourth quarter. Well, let's think about Iguatemi. On the third floor, we had a price, and the fourth floor, we had a 10% discount because of the distance. You have to go up to the fourth quarter.
Our negotiations are in line with the negotiation above that 10% we had put in for rent. All the restaurants have been leased. We have brands that have been leased, and we should reach 100% of leasing in the rooftop. The same holds true for Brasília. We offer a discount in the area of expansion, but we have some anchors that we're bringing down that will be announced in the coming two months.
In November, we should reach occupancy of 90% of the expansion of Brasília with pricing highly aligned with the pricing of the rest of the mall. Now, the question about the growth of rentals and spaces, we continue to have strong demand in Iguatemi. The request of international brands, relevant brands, or an expansion for flagships, for example, as we have done now for Maison Dior, that will have an incredible store here.
In the new rentals, even for international brands and national brands, and for renewals, we have rental growth above two digits, high figures for Iguatemi Mall and JK Iguatemi. From the viewpoint of product and rentals, we're qualifying these assets. We're making them more profitable.
That was very clear. Thank you very much.
We continue with Goldman Sachs. Jorel Guilloty.
Good morning, everybody. I have two questions. First, about parking. You say that you have adjusted the rentals of parking 12% year-over-year, but you said that the flow of vehicles was stable around 8 million vehicles. First, about your parking revenues. Adjusted, that figure is 12% year-over-year, and the flow of vehicles is stable. It was 7.7 million vehicles. Now, the growth of your parking revenue, is this based on price?
Is this a permanent change? If it is price, what's going to happen with your tariffs? Will you continue to increase them through time? A question on your occupancy rate. You had an increase of 30 basis points year-over-year. I'd like to understand the dynamic and how much of that was the rentals for the present-day tenants, and what will happen with the new tenants that are paying a higher occupancy cost.
To speak about parking 12% a year, even with a stable flow of vehicles, we have two components here. One is the tariff. We readjusted these rates at the beginning of the year on January 2nd. That has an impact and a strong composition of valet parking. Valet is growing vis-à-vis self-park. All of our valet growing around 30%. As valet parking has a higher price, it increases the invoicing of our parking.
I invite all of you to come visit our new valet in Iguatemi, São Paulo, off the Maffei Vita Street. We have a new lounge for the parking that is worthwhile visiting. In terms of occupancy, we had an increase of 30 basis points, as you mentioned.
The occupancy, we have a positive spread of the new rentals. Same area range, same area sales are being occupied by new stores that have a better price. When we look at the inside with a greater base, we took away those tenants that had been there for five years with renewals. We're taking away that rent that was somewhat lower to maintain occupation during those years. Commercial tables were readjusted, and we have repriced everything. You will see an increase of rents per square meter .
We had a lag in terms of this. Now we have had an evolution. Because of the lease spreads and the new overage, we had a drop of overage when we look at the international stores that saw less, and this generated an impact on sales and an increase in occupancy.
If you allow me one more question. You said the leasing spread for the contract was 10%, and for renewals?
around 10% as well.
All right. Thank you. Thank you very much.
We continue with Andre Mazini from Citi.
Ciro, Guido, thank you for taking our questions. We have two. The first question is about Casa Figueira. It should be inaugurated in the third quarter 2026, but only 6% of the project has been sold. Is this within your expectations? Is it somewhat low, considering that the inauguration is in the short term? What will happen with the sales going forward? The second about RIOSUL Mall. There is a draft bill in Rio to offer free parking in the malls in the state for those who have a certain level of consumption. We have already seen that attempt in the past. What will happen if this goes forward in Rio de Janeiro? Thank you.
Mazini to speak about Casa Figueira. We are finishing the first phase of infrastructure works. In the first quarter, we will finish the pavement, the streets, the bicycle lanes, lighting, and the marking of all of the plots. We will deliver this to the city. What we are missing are the linear parks that we will deliver in a second phase. We have a partnership with Isabel Duprat, who will lead this second phase for landscaping. We have a sale that we should carry out in the first quarter.
This delayed because of the discussion of projects. For this year, we continue to need some updates. Last year, we had sold four lots. The lot had already been launched. It is house 105. We have sold another two, H1, H2. We have an additional four lots that are up for sale that we will sell during the third quarter. H1 and H2 should have allowed us to sell H3 and 4 now, but this did not work.
The market is not aiding and abetting us because of the interest rate. You know the real estate market very well. As part of our sales planning, we should be able to do that in the third quarter. About that law in Rio de Janeiro, we have been through that so often. Several draft bills have been launched of free parking.
There is favorable jurisprudence at the superior courts, but we do not believe this will come about, that this will materialize. This is not only for Rio. This appears in all cities, especially in electoral years, this idea of offering free parking. We do not think that will be approved. It is an unconstitutional law, and this has been proven. It is legislation on private property. It is our right to charge the price that we believe is a just price. Thank you.
Thank you very much, Ciro.
We continue with Ana Júlia from UBS.
Good morning, everybody. Thank you for taking my questions. We have a question in terms of capital allocation. We have heard a great deal of discussion about credit, default problems, perhaps worse margins or worse expectation going forward. As we draw closer to elections, we have additional volatility. What is your mindset in terms of capital allocation?
Have there been any changes thinking of expansion? How about your guidelines for 2027? Are there any changes in the payout of dividends, and what is your mindset in terms of your leverage? What would be comfortable at present?
Hello, Ana. As part of what we can say, because we do not offer guidance in CapEx, we will be somewhat below what we had said of BRL 450 million, BRL 460 million. Our CapEx will be somewhat lower because we have had some delays in the works, especially in Brasília and the tower in Campinas, especially the tower that has a delay in terms of its beginning. It began in July. We will have some savings. The Market Place project that we are rethinking, we had expenses that we had included in the guidance for the retrofit that will be delayed. We are reviewing the project.
When it comes to capital allocation, our mindset has not changed. It's a very healthy allocation considering the interest rates. Even if the interest rate gets to 13.75% a year, we might have two additional drops of 0.25. The level of interest rates will continue to be high. When we look at our leverage, we're going to maintain our leverage at the present day levels.
As I showed you, if you look at our background, the leverage is always at 1.6 x or 1.8 x, we will continue with this. When we think about growth, the growth of the company's FFO the growth of the company's results that you project and focus on, this year we're paying a dividend of BRL 200 million. We have a BRL 200 million buyback open. We have kept this open. We're paying dividends. We will review this in 2027 and discuss it in the coming levels in terms of improving the payout as of 2027 going forward. Thank you.
Thank you very much.
We continue with Pedro Perone from Bank of America.
Good morning, team Ciro, Iguatemi. We want to go back to a topic mentioned by Jorel, the cost of occupancy. You have very healthy levels, this gives you a certain level of comfort. How much space do you still have to capture more rentals without compromising the work of the tenants?
Will the renewals accommodate in the coming quarters if we think of the dynamic of your contract renewal? As the portfolio is concentrated with more mature, top-quality assets, which are the growth levels that the company foresees in the coming three to five years, more leasing spreads, or the retail part of the company? These are our two main questions.
Thank you, Pedro, for the question. The cost of occupancy, we speak about this broadly. We have been looking for a difference in take rate, seeking increases in profitability, an increase in sales, which would be the smart thing to do. What determines this is how much we can accelerate this vis-à-vis our sales. If we take away this quarter, our sales were growing strongly.
We had a good line of growth of sales our ability to renew contracts, looking for that difference. Not that we haven't worked with those spreads, as spreads have been 10% with real gains in the contracts, especially in our flagships our AB malls in the hinterlands in the south. We do have good growth. We're going to continue to work diligently on that. We have significant opportunities.
There is the opportunity to seek complementary leases. We can increase the leases through time continue to accelerate our sales. These are the two universes we're working with. There is an opportunity for growth, we're working diligently on creating good results through time.
In that horizon of three to five years, we could mention some of the vectors as Ciro mentioned. We have a great deal of growth coming from the mix repositioning. We will have several novelties. We have interesting commercial agendas that will have an impact on the company. New brands. Look what we brought down, H&M, for example, that has grown through us. We're the main player in Louis Vuitton with Zara others. This shows you the spread that we have at JK. We have lines and more lines. Of course, all of this will grow jointly with us.
On the other hand, we have the possibilities of expansion. We are expanding in Brasília, Iguatemi São Paulo. We have a favorable scenario, which we have discussed at previous meetings. The master plan of São Paulo, approved in 2023, allows us the potential of transforming specific areas with the law of the active façade and other laws. This generates new possibilities. We could make the most of our land in São Paulo. We are the main player in São Paulo. We have Pátio Paulista, Higienópolis, JK Iguatemi, and Market Place itself. We do have that opportunity for growth.
Another current would be the land bank that we have that enables us to grow fractions for towers or participate in investments wherever we think this makes sense to increase our lease and our exposure to commercial towers. As you must have followed up, this has been growing. It has grown significantly after the pandemic, especially the residential towers that has a high interest rate, and it is difficult to obtain real estate credit in the middle and high range.
The commercial towers are back, and they are back strongly. If we think about Chucri Zaidan, the corridor, we are reviewing the Market Place two or three years ago, the vacancy was 30%. Presently, the vacancy is only 15% in that same corridor. You can see everything that is being launched, and it has been practically leased.
We do not have vacancies on Faria Lima that encompasses Rebouças and Marginal corridors. Our towers have 90% occupation, therefore. We look at that, and we look at our land bank and look at all the possibilities, and this is a good return that we could have to increase our stake in that sector.
That was very clear, Ciro, Guido. Thank you very much.
We continue with Mariangela Castro from Itaú BBA. Mariangela, I'm sorry.
Thank you for the presentation. We have two questions. I would like to better understand the mismatch of sales of same area. When we look at the same-store sales, the rent grew 2.7% and 1.7%. If you could help us to understand what generates this gap, sales growing more than the rent when we look at the same area in the malls. This is the first question.
The second question, a question about capital allocation. You spoke about dividends and much more. Which is your appetite to acquire stakes in the malls that you already have? Are you thinking of M&A in this scenario of higher interest rates? Which is the company's appetite for this?
Mariangela, the question about the mismatch, a good question. What happened? We saw same-area sales growing more than same-store sales, especially because of the new stores. We spoke about the case of H&M, Zara Home, and other brands that have a positive sales spread. When we look at same area range, we had some impacts that relate to the hinterland, Praia de Belas, and Market Place. In Market Place, we have been closing out areas because of the retrofit project. We are losing in same-store range, same area range. This has impacted our figures.
In Praia de Belas, we closed a supermarket that sold BRL 4 million a month, Nacional. Along with that closing, we closed a wing of satellite services. Zaffari will be using this area. We're repositioning it. We had a loss of sales and of course, the loss of those services, which also had an impact. In the hinterlands, a higher churn in Ribeirão and Rio Preto that impacted our same-area range.
That is the reason for the mismatch. When it comes to capital allocation, if we look at our portfolio, of course, we're interested in increasing our stake in the more productive assets, and we're going to do that, always thinking about the possibility of movements, the increase of capital.
We're not going to increase our leverage in one of those movements, and we still see some room for the sale of minority stakes to subsidize the acquisitions that we might carry out. We're looking upon this very calmly, and we don't foresee great movements in terms of acquisitions that could appear in the very short term.
That was very clear. Thank you very much, Guido.
We continue with Rafael Rehder from Safra Bank.
Good morning, everybody. Thank you for taking our questions. I would like to mention the NOI margin. I don't know if these are your highest margins, but very close to that, and you had an improvement of mix. You sold a stake in the portfolio that was less productive, and recently you increased allocations in the more productive assets. Does your margin already reflect that mix? Will there be an increase in that margin going forward? The 94% that we saw this quarter.
Rafael, that is precisely it. You answered the question yourself. The margin was a record 95% for net operating income. When we look at our stake, it's concentrated in malls that have a higher NOI and higher brands. The weaker malls have lower NOI margins, especially because of their legal costs or default malls. The main malls in our portfolio have a zero default rate.
Pátio Paulista, RioSul, Iguatemi, Porto Alegre, and others have a zero default rate, and the discounts are also almost zero, so NOI is 95%. The concentration of the portfolio in productive malls will allow us to always work around those levels of 94%-95% net operating income. Thank you.
Thank you very much.
We continue with Marcelo Motta from JP Morgan.
Good morning, everybody. A quick question. If you could speak about the retail results, 365, is the growth still strong? The EBITDA, well, it seems to have something in other expenses, other income. What would be a recurrent margin and the potential of growth? You give us more color.
We should remember which is the retail strategy. The strategy is to have in our portfolio some brands that otherwise would not come to Brazil, but that want to have a partner and come in through our door of entry in Brazil, and they are differentials in our portfolio. We stand out for having this Polo, for example, or Birkenstock with very high sales per square meter. These are brands that know that the sales per square meter are very high. Other groups that are not shopping malls that operate other brands or other malls also want these brands to be in their portfolio.
We should always remember that so that we can make the right movements in retail. We have had a very good performance. We have had an increase in sales, an important increase, especially in Polo, Birkenstock, Louboutin, and other brands that we have brought down as a complementary revenue in our mix. We have had a successful negotiation with these companies. We carry out successful purchases, so it would make sense to open the store in RioSul.
The store is a true success. Many of the customers that no longer went to RioSul, that went to other malls in the southern area, appeared at our mall simply because the mix is changing. This is part of it, of taking the appropriate product for that market, and the retail has an important role in this.
We have a pipeline of growth that will be very focused as we had in RioSul. We have also signed a contract for Birkenstock in Iguatemi Campinas. Sales are growing well, so to bring in the best product and carry out a good negotiation is important. In retail, we have one more front besides our exclusive mix, our culture, our experiences, and much more. Our customers, our top-line customers, are all interested in acquiring these projects. Thank you.
Thank you very much.
Ladies and gentlemen, thank you very much. As we have no further questions, we will return the floor to Mr. Ciro Neto for the company's closing remarks. You may proceed.
I would like to thank all of you. It is a pleasure to be here with you. Myself, Guido, the IR team, and the financial group are at your entire disposal. Once again, many thanks for your attendance. Have a good day.
We thus conclude the Iguatemi S.A. earnings result conference. Have a very good afternoon.