Good morning, everyone, and welcome to Mallplaza's third quarter 2026 results conference call. Today with us are Pablo Pulido, CEO, Felipe Ramírez, CFO, and Sebastián Macchiavello, Vice President of Finance. This presentation, the third quarter 2026 earnings release, are available on our investor relations website and will also be available for download in the chat. During the company's presentation, all microphones will be disabled. Later, we will begin the Q&A session. To ask questions on audio, click on raise hand and state your name and company. You will then receive a request to activate your microphone. Please activate your microphone to ask the questions. To ask questions in writing, just queue the question in the Q&A button. Please be aware that your company's name should be visible for your questions to be taken. I will now turn the call over to Pablo Pulido. Please go ahead, sir.
Good morning, everyone, and welcome to Mallplaza third quarter 2026 earning conference call. I am Pablo Pulido, Chief Executive Officer. Joining me today on the call are Felipe Ramírez, our Chief Financial Officer, and Sebastián Macchiavello, our Vice President of Finance. Before we walk through our results, I would like to welcome Sebastián to the call. Many of you will remember him from his time as Vice President of Finance and Investor Relations at Mallplaza. Sebastián rejoined the company in August after completing his MBA abroad, and we are pleased to have him back on the team, leading our finance and investor relation strategy. In line with our growth roadmap, I would like to highlight two milestones that demonstrate the momentum of our regional growth and expansion strategy.
First, we successfully completed the acquisition of the eight Gran Plaza shopping centers in Colombia, and we assume operational control of these assets on October 1st. This expansion brings our Colombian portfolio to 13 assets, totaling more than 460,000 sq m of GLA and strengthen our competitive position in the country. Second, we signed two strategic agreements with Falabella Group to acquire, develop, and consolidate shopping centers in Peru and Chile. Both transactions are advancing through due diligence, and we are working to close them in the coming months. Together, these transactions add approximately 410,000 sq m of GLA, and the acquisition in Colombia and Chile represent a combined enterprise value of $556 million. With that, I will hand it over to Sebastián, who will walk you through today's agenda and the key highlights of the quarter.
Thanks, Pablo, and good morning to everyone. It's a pleasure to be back at Mallplaza at such an exciting stage of growth and expansion from the company. Before we discuss our third quarter 2026 results, please note that the management may make or refer to forward-looking statements during the presentation relating to our company, its results, operations, expenses, strategy, potential restructurings, and other similar matters. Such statements are based on assumptions and expectations of the future events that are uncertain and contain risks. For further information on this, please refer to our disclaimer displayed on the screen. Today's presentation will follow this structure. First, we'll review our financial operational performance during the third quarter. Next, we'll share key strategic milestones and progress on value creation initiatives. Lastly, we'll open the floor to questions. During the third quarter, Mallplaza continued to execute its growth strategy.
We secured three transactions in Colombia, Chile, and Peru, with attractive valuations and strong development potential, and we made further progress in our expansion plans, which represents a total investment of approximately $615 million. We also continue to optimize our tenant mix and enhance asset performance. Our urban centers in Peru, formerly Open Plaza, delivered strong growth, with revenue up to 14% and average monthly revenue per square meter up to 15%. Our Mallplaza Premium Outlets also post solid results, with sales up 18% in Peru and 32% in Chile, and revenues up 31% and 22%, respectively. In addition, we advanced the transformation of Mallplaza Iquique and made solid progress on the expansion of our tier A assets, Mallplaza Trébol, Oeste, La Serena Norte, and Trujillo.
Looking ahead, with 2.3, almost 2.4 million square meters of GLA today, our focus remain on strengthening our value proposition of our urban centers and expanding our share of tier A assets across the Andean region, driving sustainable long-term value creation. With that, I will turn over to Felipe, who will walk us through the detail of the quarterly results.
Thank you, Sebastián, and good morning, everyone. It's a pleasure to be with you today. During the third quarter, our results reflect solid organic performance in our urban centers, with revenue growth, stable costs and expenses, and an expansion in our EBITDA margin, while we continued advancing our portfolio's renovation and expansion projects. Turning to our operational performance on slide five, footfall across our urban centers reached 92.8 million visits, broadly stable versus the 93.2 million record in the same quarter last year. On a year-to-date basis, footfall totaled 283 million visits, representing a 1.6% increase. Tenant sales totaled CLP 1.63 trillion for the quarter, a 1.3% increase year-over-year, with same-store sales growing 0.9%. Year-to-date, tenant sales grew 4.3%. Monthly sales per square meter increased 6.5% during the quarter.
At the asset level, the top performers in tenant sales were the premium outlets Sebastián highlighted earlier, Concepción in Chile and Atocongo in Peru, together with Mallplaza NQS in Colombia, up 19.9%. This reflects solid performance in specific assets across the three countries. Additionally, our consolidated same-store rent increased by 4.8% during the quarter, and monthly EBITDA per square meter grew 7.7%. We recorded these metrics while maintaining a consolidated occupancy rate of 95.9%, 0.3 percentage points above the same quarter last year, and we advanced with our portfolio transformation and expansion projects. Occupancy costs for our tenants stood at 9.9%. Moving to our financial performance on page six, net revenue totaled CLP 174 billion, up 7.5% year-over-year. Our lease contracts have an average remaining term of seven years, and 93% of our rent is fixed.
During the quarter, we negotiated 423 lease agreements covering 77,852 sq m of GLA and opened 164 new stores. Total costs and expenses were CLP 31.5 billion, essentially flat versus the third quarter of 2025. EBITDA reached CLP 145 billion, up 8.7% year-over-year, with an EBITDA margin of 83%, a 1.7 percentage point expansion compared to the third quarter of 2025. On page seven, total net income reached CLP 102.9 billion, a 25% increase year-over-year, of which CLP 101.2 billion is attributable to the controlling interest. This result was supported by higher operating earnings, a 75% increase in financial income due to a higher cash balance and higher returns, and other income of CLP 9.6 billion associated with land sales.
These effects were partially offset by a 16.2% increase in the expense from inflation indexation units due to higher UF inflation in our UF-denominated financial liabilities. Adjusted FFO reached CLP 105.5 billion, and adjusted FFO per share grew 2.5% to CLP 48.2. Our adjusted FFO margin stood at 60.3% compared with 62.8% in the third quarter of 2025, as current taxes increased 69.5% in line with a larger tax base from our stronger operating performance. Financial expenses were 0.7% lower year-over-year. On a year-to-date basis, adjusted FFO grew 5.8%. Regarding capital markets, Mallplaza continued to show growing stock liquidity and valuation. Our 180-day average daily trade volume reached $7.5 million, representing an 8.4% increase year-over-year. Furthermore, our market cap grew by 35%, ending the quarter at $8 billion, and our share price closed the quarter 36.7% above the same date last year.
We also continue to participate in global investment indices such as MSCI and FTSE, which supports our investor base and reflects Mallplaza's presence among active and passive institutional investors. On page nine, we outline our financial position. We closed the quarter with cash and equivalents of CLP 213.9 billion and a financial debt of CLP 1.76 trillion. Our net financial debt-to-EBITDA ratio stands at 2.8x, with a loan-to-value ratio of 21%. During the quarter, the market recognized our credit profile with two rating upgrades. Feller Rate raised our local rating to AAA, the highest on the local scale, and Fitch Ratings raised our international rating to BBB+. Our other ratings are Baa2 from Moody's and AA+ locally from Humphreys. This financial position and credit ratings provide us with the flexibility to execute our growth plan.
With that, I will hand it over to Pablo, who will guide you through our strategic roadmap.
Thank you, Felipe. Turning to growth, we remain grounded in our conviction that Salir es Vivir, the guiding principle that positions Mallplaza as a true social catalyst in our communities. We transform ourselves continuously so that our value proposition remains attractive to people. Our growth roadmap is structured around three strategic focuses: regional growth and consolidation, the transformation of our value proposition, and the generation of adjacent business. In this section, I would like to focus on the aggregate picture of that growth, how much we are adding to our portfolio, and how. On slide 11, you can see that our growth strategy advances through expansion, acquisitions, and transformations. In aggregate, the growth we have identified adds up to more than 640,000 sq m of incremental GLA, 235,000 sq m from expansion of our own assets, and approximately 410,000 sq m from acquisitions of new assets.
Starting with the organic growth, 170,000 of those 235,000 sq m are already in progress, backed by a total investment of $615 million, of which $509 million remain to be invested. More than 82,000 sq m are already under construction at the Tier A assets Sebastián mentioned, Trébol, Oeste, La Serena, Norte, and Trujillo, and at Mallplaza Piura. The remaining 65,000 sq m correspond to the investment pipeline we have identified in the assets we acquired, 15,000 sq m at Gran Plaza in Colombia and 50,000 sq m at Open in Chile. These new square meters will enhance our tenant mix, specifically incorporating categories such as food and beverage, entertainment, and specialty retail. This execution aims to strengthen the value proposition of each asset while improving the overall productivity of our portfolio.
Regarding acquisitions and greenfield, we are adding approximately 410,000 sq m of GLA through three transactions: Gran Plaza in Colombia with 180,000 sq m, which is already operating under Mallplaza, Open in Chile with 140,000 sq m, and the San Isidro greenfield project in Peru with 90,000 sq m, both of which are in progress. Please note that the transaction with the Falabella Group are joint ventures in which Mallplaza will hold at least a 51% stake with control and operations of these assets. With that, I will hand it over to Felipe, who will walk you through the financial details of these transactions.
Thank you, Pablo. Starting with Gran Plaza, the acquisition was agreed at an estimated enterprise value of approximately $351 million, equivalent to COP 1,178 billion, representing an implied cap rate of 9.4%, calculated on the last 12 months NOI. Regarding Open in Chile, the joint venture with the Falabella Group is subject to due diligence. The estimated enterprise value is 4.86 million UF, equivalent to approximately $205 million, with an implied cap rate of 7.9%, also calculated on the last 12 months NOI. We estimated completing due diligence and the definitive agreement in the first quarter of 2027. Together, these two transactions made up the approximately $556 million of enterprise value shown on the slide. These figures exclude the San Isidro project in Peru, which is subject to permits and regulatory approvals.
We estimate completing due diligence and the defining project conditions during 2027, with construction expected to begin between 2028 and 2029. With that, I will turn the call back over to Pablo.
Thank you, Felipe. On page 12, we detail the performance of our adjacent business. Revenue from this vertical, led by parking and retail media, grew 22% year-over-year in the quarter. This steady growth is supported by our digital parking platform, ParkFlow, which integrates with leading apps in the digital ecosystem and has been successfully implemented outside the Mallplaza ecosystem. This platform enables a fully automated, frictionless flow of access and exit. Finally, on page 13, we outline our ESG progress and recent milestones. Mallplaza in Peru was awarded the ESG distinction by Perú Sostenible. Our corporate purpose takes on its true dimension in the bond we have with the communities we are part of. Following the earthquake in Colombia, Mallplaza Cali acted promptly, launching the Cali Somos Todos, fair to channel support for those affected.
This is the culture I'm proud to belong to and to lead, an organization that is empathetic, agile, and committed to standing by its community in the moments of greatest needs. To conclude, Mallplaza closed the third quarter of 2026 with solid operating performance and financial discipline, expanding both the EBITDA and margin while actively executing our portfolio transformation, and with a credit profile strengthened by our rating upgrades. Growth is the central message of this quarter. In aggregate, our plan adds more than 640,000 sq m of incremental GLA through expansions and acquisitions. On a pro forma basis, the acquisitions in Colombia and Chile alone take our GLA from 2.36 million to 2.68 million square meters, enhancing our geographical diversification across the Andean region and reinforcing our long-term value creation.
Throughout the rest of 2026, we will maintain our focus on growth, tenant mix transformation, regional integration, and operational efficiency. I want to thank our team for their dedication and our investors for their continued trust in our vision.
Thank you. To ask questions on audio, click on Raise Hand and state your name and company. You will then receive a request to activate your microphone. Please activate your microphone to ask the questions. To ask questions in writing, just queue the question in the Q&A button. Please be aware that your company's name should be visible for your questions to be taken. Our first question comes from Gustavo Fabris with BTG Pactual.
Hi, everyone. Good morning. I have two points here from my side. The first one, very quickly, if you could outline again, please, the main factors behind this EBITDA margin expansion we saw this quarter. I noted that there was a reduction in the other expenses line as well, so this would be very helpful. This is the first point. The second one is on Chile. I think we're probably seeing a more pronounced effect of a weakening consumer environment in the country. I guess I have two points here in Chile specifically. The first one is, how do you expect this sales trend to evolve, especially now that we enter the holiday season? And how do you expect the leasing spreads to perform in the country going forward as well, considering the current occupancy cost level that you guys reported? These are my questions. Thank you.
Hi. Regarding the EBITDA margin of 83%, in which we are very happy to have that performance in these months, we were conscious about the importance of cost controlling this month, particularly in this scenario in which the sales are not so strong, particularly in Chile. That's why we effort a lot of initiatives around the company to control cost in several different areas and initiatives. We are very happy with the 83%, and we think that the level of among 81% or 82%, 83% are really good indicators in which we feel comfortable to keep in the future operation.
Regarding the consumption in Chile, we expect that the end of the year is going to be still like we have the past two quarters. It means the consumption is going to be weak, but we are very positive in the future. We are doing a lot of things in the micro. It means all the transformation we are doing in our assets. We have a lot of brownfield with improving our commercial proposal in each of our assets in Chile. So, we are very comfortable to see a higher consumption in the future, means in 2027.
Thank you, guys.
The next question comes from Jorel Guilloty with Goldman Sachs.
Good morning. Thank you for taking my questions. I have two. The first one is, I want to go back to the same-store sales trend for Chile. Specifically, I wanted to understand how the tenant is doing. I want to understand if you are initially seeing tenants wanting to do renegotiations, or if you are seeing any trends as it pertains to delinquencies, or do you expect any changes for that going forward? Particularly considering that we have a fair amount of macro headwinds for the consumer, being energy prices, high unemployment. The other part that I want to understand was around parking revenue. If I look at it seems year-on-year, it grew materially around the teens, or high teens. I just want to understand, how should we think about that growth parking revenue in a few ways?
How much of that increase was due to prices versus traffic? How much of that was due to an expansion of locations where you previously didn't have parking being charged and now you do? How much more is there going forward? Those will be my questions. Thank you.
Thank you for your question. First of all, our tenants in Chile are in very good shape. We have a really good occupancy. What we expect is to continue having better spreads in our leasing, even this year, where the consumption is low. That for the first question. For the second question is, we are positive to continue increasing our parking income, because we have a better proposal. What we are doing in all our brownfield projects in Chile, Peru, and Colombia give us two more things than the tariffs, which have a longer staying of our clients, because we have better proposal.
Also, the different uses we are putting in our assets give us more time and more visits. With more time, more visits, we also increase our parking income. We still have a lot of room in Peru and in Colombia in the parking business.
Thank you.
The next question comes from Marcelo Motta with JP Morgan.
Hi, everyone. Thanks for taking the question. I have two as well. The first one is you can comment a little bit of expected synergies at Gran Plaza. You have a comment about they could be on the revenues and the cost front, but just to understand if you have mapped something that you can share with us. The second question is more regarding the P&L. When we look at G&A expenses, it was at the lowest level in the year, the CLP 17.7 billion. It was running around like 23 on average for the first half per quarter. Just wondering if there was any one-off here or something that was not recurring for the coming quarter. Those are the questions. Thank you very much.
Thank you, Marcelo. I will start with the synergies with Gran Plaza and let Felipe answer your second question. The Gran Plaza synergies are mostly in the income level. We have our proposal that we can give to the portfolio is much better than the proposal they have right now. We have identified from the 180,000 sq m of GLA, more than 35,000 that we are reshaping. It means that we are changing with better tenants. So, those 30,000 will give us a better lease and a better sales and a better proposal for Gran Plaza. First of all, is in the income level, we think we can do better negotiations in the 180,000 and also have better tenants. So, the income, we should expect an increase in the income in the following 12 months, a very important increase.
The second is the growth we can do in those assets. We have identified 15,000, but we still think we have more room than 15,000. We are actually working with big tenants so we can anchor better the assets. So, we will have also, if we can anchor more, give more uses, we will have also a better income in the adjacent business in this asset. So, we expect also to have better adjacent business in this portfolio. Finally, in terms of expenses, we took a lot of control of our structure. We almost, with the same team we work in Colombia, we are taking the portfolio of Gran Plaza. We have, in terms of corporate, you can expect only like marginal growth in terms of in the expenses.
As you can see, the case of Peru is really similar to the case of Peru, where we improve our income, the structure in terms of people stay really flat. We can expect a better performance on the assets, a better commercial proposal, a better income, and very controlled expenses.
Regarding the other question about the G&A, we do not see any significant one-off expense this quarter, just a stable cost and an effort to keep in that way for the future.
Super clear. Thank you very much.
The next question came via text from Macarena Gutierrez with Credicorp Capital. "How should we think about the consolidated EBITDA margin going forward? We understand the assets should be integrated in 2027, but there will still be expansion and other interventions after that. Should we expect margin pressure through 2029 or even beyond? And how significant could that pressure be?
In terms of margin, we are really comfortable with the 80%, over 80% margin that we have shared with you in the past year. So, what we expect is, we expect when we grow in the Andean region, the margins should stay and also increase a little bit because with this, what we have is that we have very controlled expenses in terms of corporate. We have the teams, and we are able with the teams to get the expansion done. So, we are very comfortable over 80%, and we expect that to continue for the following five years without a problem.
Hi, Macarena. Sebastián here. Just to add on what Pablo was saying, as we integrate this new asset that we integrated to our portfolio, we should expect margins move a little bit quarter to quarter, as we integrated them. The new square meters should take a little bit of time to ramp up. But in the short term, we should see those square meters ramping up. The good thing is that what we are focusing right now is to keep growing our revenue ahead of costs, supported with the growth that Pablo was mentioning in prior questions, and with the adjacent businesses that we are pushing forward. And of course, the growth pipeline.
Remembering, to ask questions on audio, click on Raise Hand. To ask questions in writing, just queue the question in the Q&A button. Again, to ask questions on audio, click on Raise Hand. To ask questions in writing, just queue the question in the Q&A button. This concludes the question and answer section. At this time, I would like to turn the floor back to Pablo Pulido for any closing remarks.
Thank you very much, everyone, for hearing us and to be here with us the last 40 minutes. We have a great quarter, and the future with the growth we have completed this quarter is really great for Mallplaza. Thank you very much.
Thank you. This concludes today's presentation. You may disconnect now and have a nice day.