Good morning, and thank you for taking the time to connect to the Parque Arauco fourth quarter 2025 Earnings Call. I'm Lauren Brown, Head of Investor Relations, and I am joined by Eduardo Pérez, CEO of Parque Arauco, and Francisco Moyano, CFO of Parque Arauco. I would like to mention a few things before we get started. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. Please note that this call is being recorded, and the recording will be used for internal purposes. To start off today's conversation, I'm going to pass the call over to our CFO, Francisco Moyano.
Thank you, Lauren, and good morning, everyone. Parque Arauco had an extraordinary 2025, marked by significant achievements across all four of our strategic pillars. These highlights are detailed in the opening pages of our quarterly report that we are seeing here, the first page. I would like to review some of them with you today. In the growth pillar, 2025 was a landmark year with over $400 million in investments. We acquired Open Plaza Kennedy for $193 million, and this asset perfectly complements Parque Arauco Kennedy and improved our best asset in Chile. A mixed-use that today has almost 200,000 sq m of GLA. Additionally, we acquired Minka in Peru for $113 million at an attractive cap rate, adding substantial value to our Peruvian portfolio.
Beyond acquisitions, we continue to expand our top-tier assets. At Parque Arauco Kennedy, we have opened new retail spaces and will soon debut a renovated gastronomic hall. We are also enhancing the customer experience at Megaplaza Independencia and MegaPlaza Ica. Finally, it was a productive year for multi-families, with well-located assets successfully beginning operations in Peru and Colombia. With that, we have a terrific year in 2025. During the year, we have announced several projects, and we are seeing 2026 with great optimism in order to continue in this trend. In the profitability pillar, our financial performance was exceptionally strong. Boosted by inorganic growth with high margins and very positive scenarios both in sales and revenue, we saw a 19.5% increase in EBITDA and a 43% growth in net income.
These results were driven by record high occupancy levels of 95.7% and a stable EBITDA margin of 74.5% that we can see in the chart below in this page. Furthermore, we successfully issued bonds in Chile and Peru totalling $150 million. The favorable rates and terms of these issuances reflect our strong access to financial markets and the deep confidence that investors have in our company. In our client experience pillar, we are leveraging intelligent applications to better understand customer needs and provide a friction-free experience including ticketless parking. For our tenants, we are expanding our omnichannel ecosystem through alliances with Mercado Libre, Starken, and Blue Express, optimizing dark stores and logistics services. In sustainability, we are proud to have issued the first green bond by a South American mall company.
We maintain our positive ratings in MSCI and Dow Jones Sustainability Indices and remain part of the S&P Sustainability Yearbook. Notably, we installed the largest rooftop solar plant for a South American shopping center at Alegra, which generates 197 megawatt-hours per month, covering 26% of our common area energy consumption. Those are some of the milestones that we have during the year. I would invite you to review those in detail. Also to comment that yesterday we have an another announcement. The board of directors has proposed a $330 million capital increase to boost future growth. This proposal will be presented at a shareholder meeting set on February 24th, where it will be presented and the final decision will be taken.
With that, I would like to pass to the tenant sales page to review some of the figures that we have for this quarter and the whole 2025. In fact, we have a very positive year, as I mentioned before, but also in this quarter. In this quarter, we are seeing same-store sales growing in all three countries, with a 2.9% increase in Chile, 5.6% increase in Peru, and 9.1% increase in Colombia. Sales in Peru in the third quarter were negative in same-store sales. This positive figure of 5.6% is presenting an increase and a positive scenario for sales for the short term and the 2026 perspective.
The growth for the whole year was 16.4% in sales, in a consolidated figure. If you break down that figure by country, you can see that this growth is also very positive in Chile with 15.9% growth, in Peru 18.1% growth, and Colombia 15.1% growth. This is to mention that in the broader view, we've had a strong year in all three countries, and all of them are presenting this double-digit growth. In revenues, the increase in the whole year is 21.2%. Same-store rents are growing beyond sales at 10.3% in Chile, 5.9% in Peru, and 14.1% in Colombia.
The growth for the year by country is 23% for Chile, 26% for Peru, and 9% for Colombia. It's also quite positive in all three countries and is a result of the commercial efforts that we have done in the three countries in order to improve rents of our spaces. We can pass to the EBITDA now. The EBITDA is growing 19.5%. This is a high growth that is boosted by the inorganic growth. As I mentioned before, we have new assets, but at the same time, we have very positive EBITDA in the organic growth for the current assets. In this 19.5% is also we can see positive figures in Chile of 21%, Peru 25%, and Colombia 9%. With EBITDA margin that I would like to highlight.
If you see the EBITDA margin for 2025 in comparison with 2024, we can see that it's quite stable at 74.5%, with a drop that we had in the fourth quarter of 2025 of 71.6%. We have in the quarter some one-offs that we are not expecting to repeat in the future. The most important one was the strategic reorganization that we had at the end of 2025 that is improving our organization, but it has some costs that were accounted during the quarter. We are not expecting then to continue with a margin around 71%, but what we are seeing in 2026, something above the 74% that we are closing for 2025. Now passing to the FFO.
The positive figures that we saw in revenues and EBITDA are also translated to the FFO, where for the whole year, the FFO is growing 16.3%, and the adjusted FFO is 31.2% above the figure of 2024. This growth also. You can see it in the chart in the evolution of the price to FFO ratio, where it's growing from 7.9% to 12.7% that you can see in the chart on this page. With that, I would like to pass the call to Lauren to continue with the presentation.
Thank you very much, Francisco. Now I would like to turn to the performance of our retail assets in fourth quarter of 2025. You can see various slides starting on page 18 and 19, where we mention some highlights, and also all the way through page 22. Let's turn now to Chile. Parque Arauco Kennedy West, the original building of the asset, showed solid growth in revenues, growing by over 19% and EBITDA by over 28%, reflecting the price optimization strategy and the high productivity of the asset. During Q4 2025, we continued to open GLA in the new Cerro Colorado sector.
Currently, 9,600 sq m are operating, including the new Nespresso and Dior flagship stores, Vélez, Lindt Chocolate, and The Lego Store and Ashley Home, which have seen noteworthy sales since opening, among many other stores. The new GLA of the Cerro Colorado sector drove the increase in revenues alongside the higher minimum rents of the connecting Rosario sector. Rents increased at the stores in this sector now that the construction is almost finished, allowing for complete connectivity to the rest of the mall. The steady flow of tourists continues to be a factor in sales at Kennedy, although the dynamism of local shopping remains a determining factor. In turn, the opening of new spaces and changes in the commercial mix have had a positive effect.
Arauco Outlets have also performed very well, performing strongly and generating an increase of over 11% in tenant sales and 19% in revenue, while EBITDA has grown by over 9%. During this quarter, Outlet Buenaventura saw improved sales due to the addition of new stores. The clothing and footwear segment grew by over 9%, translating into higher variable income. The performance of the outlets during the fourth quarter of 2025 is particularly noteworthy because we already had the tourism effect in the fourth quarter of 2024, resulting in a high comparison base. At Arauco Quilicura, we also experienced strong performance during the fourth quarter of 2025, with sales increasing by over 19%, revenues by over 11%, and EBITDA by over 6%.
This growth can be partially attributed to the consolidation of the shopping center's expansion, which included the addition of a Líder Express supermarket, which performed above the expected budget. Additionally, we recently began charging for parking at this asset, which has also helped drive the increase of revenue. This quarter, Arauco Quilicura showed a solid increase in visits, over 30% higher than the same quarter of the previous year, reaching over 700,000 people in fourth quarter 2025. In Chile overall, there was an increase of over 12% in the number of visitors to our assets in the fourth quarter of 2025. Moving on to Peru. In Peru, various master plan expansions are underway at our key assets, MegaPlaza Independencia and MegaPlaza Ica. Mega...
The master plan at MegaPlaza Ica involves the temporary closure of the financial sector, reflecting a significant drop in revenue for the quarter by 3%. Despite interventions at this asset, sales increased by over 11% compared to the same quarter of last year. On the other hand, MegaPlaza Independencia, despite being in a phase of conversion, recorded a 2.8% increase in sales and a 7.2% increase in revenue. Additionally, an 8.4% increase in NOI. Moving on to Colombia. Overall, Colombia had a strong quarter. The increase in tenant sales this quarter is explained by department stores with Falabella and also clothing stores showing positive increases generally across all assets. Higher revenue is mainly explained by an increase in minimum rent due to the arrival of new tenants, tenant changes, and good sales. Titán Plaza.
Titán Plaza in Bogotá stands out in the quarter as the asset with the highest sales growth, an over 23% increase compared to the same quarter last year. This is largely explained by a significant increase in occupancy, reaching 100% in Q4 2025. Among the new tenants, we highlight the addition of Skechers and Vélez. Sales at Titán Plaza increased by over 18% in the restaurant category, 9% in minor stores, and over 100% in intermediary stores. During the quarter, Titán Plaza generated over 9% increase in net revenues due to the increase in minimum rents compared to the same quarter of the previous year. The asset's NOI also increased by 10% compared to Q4 2024.
Arauco Outlet Sopó generated over 22% EBITDA growth, driven by an 8% increase in net revenues and 36% lower net costs and expenses, particularly in maintenance. This EBITDA growth is also explained by the start of the parking business in December of 2025. Sales at the outlet grew by 8% compared to the same quarter of the previous year. The increase in sales is explained by footwear, which increased by 24%, and apparel by 5%. In clothing, Carolina Herrera experienced over 21% growth, while Levi's grew by over 25%. In footwear, the new tenant called Sale Factory stood out. Moving on to development on page 25. I would like to highlight our CapEx table, where you can see that we are following through with the development of the projects that we announced to the market.
The CapEx table includes the recent acquisition of Parque Arauco East Building, Minka Shopping Center, and the recently announced Premium Outlet in Buin. On the top right-hand side of the slide, you can see a pie chart showing the breakdown of our total CapEx investment by type of project that we have already incorporated. Some of these have already been incorporated in 2024 and 2025, while others will be incorporated between now and 2028. By the time all of these projects are completed, we will have invested over $730 million. While page 25 highlights total CapEx, on page 26 we take a look at the remaining CapEx.
You can see the breakdown by type of project of the remaining $138 million in the pie chart on the left-hand side of the slide. On the right-hand side of the slide, you can see the investment distribution by project. Our investment pipeline totalling over $730 million is a historic figure for the company, representing almost a quarter of the total value of investment properties as of the end of fourth quarter 2025. Additionally, the excellent performance of the portfolio has allowed us to close the net financial debt to EBITDA leverage indicator at a rate of 5.3 x, despite recent acquisitions. This balance sheet strength gives us room to continue executing our growth pillar, announcing new projects for the upcoming years and strengthening our project pipeline.
On page 28, you can see information about one of our most important development milestones, which is the advancement of the Parque Arauco Kennedy master plan expansion. Once completed, the seven floors of retail of the Cerro Colorado phase will add over 11,000 sq m of retail space and over 23,000 sq m of office space. This phase will be completed entirely in the first half of 2027. On page 29, you can see the next part of the expansion plan, which includes the inauguration of the new 414 apartment unit building, the multi-family building, the first one to be incorporated into an existing asset. This will complete the Kennedy phase of the expansion in 2028. To review more details of this master plan, I invite you to look at our case study on page 35.
As you can see, since 2007, this iconic asset has nearly doubled its GLA and quadrupled its net revenue. The Parque Arauco Kennedy expansion project has gone through multiple stages, consolidating itself as the most relevant asset in our portfolio, with investments totalling over $450 million for the 2025-2028 period, including the purchase of Open Plaza Kennedy, which is now attached to the real estate complex. The growth of the GLA revenue and relevance is set to continue as the master plan evolves Parque Arauco Kennedy towards a comprehensive mixed-use model, transforming our flagship asset into a destination that captures value through the synergy between retail, offices, and multi-family. If you have not been to Parque Arauco Kennedy recently, I recommend that you come and explore the new Cerro Colorado phase.
This phase included the demolition of the old Falabella store, construction of parking lots, and will incorporate over 11,000 sq m of retail space, over 9,000 sq m of which is already opened and operating. Additionally, an attractive new main entrance that faces Parque Arauco will open shortly. The retail area will have seven floors. The first three floors and the underground floor that connect to the metro will be dedicated to retail space, including over 70 new stores. The floors are also strategically segmented into categories, with men's and sports on one floor, women's and clothing concentrated on another floor, home and children, and then services also concentrated on different floors. The fourth and fifth floor will consist of a new food court with views of the park, and the sixth floor will be dedicated to a restaurant district.
The food court and restaurant will comprise of over 1,600 sq m of floor space, achieving a 55% increase in seating capacity compared to the current food court. It will include high standard design and decor, with a large terrace overlooking Araucano Park. This food court section is expected to open in the first half of 2026. The first tenants have begun operating in the Cerro Colorado phase, including various brands that have been launched to Chile for the very first time, including the store Dior, Faces, and Seiko, who have chose Parque Arauco as their inaugural store in Chile. Additionally, Desigual and Nespresso have chose Parque Arauco as the location of their new flagship store, joining Falabella, who chose Parque Arauco for their flagship store a few years prior.
As we typically have in our fourth quarter, we had many successful Christmas installations throughout all of our assets in Chile, Peru, and Colombia. You can review the more details about this on slide 39. I would like to highlight that these efforts were great at bringing in new customers to the mall and also increasing our customer base and the list of consumers on our mailing list. As Francisco mentioned, we are very proud to have inaugurated over three self-generation energy projects in Colombia and then also another one in Peru, which you can read about on our sustainability page on page 40. Now I would like to move over to the question and answer segment of the call.
If you are joining the call using the link, you can ask a question by clicking the button, "Ask a Voice Question" or by submitting a written question. If you are submitting a written question, please write your question in English. This way it can be directly read out loud. If you are joining by phone, you can ask a question by pressing star two. When you are invited to speak, I will unmute you so you can ask your question. To start off today's call and question section, I would like to pass the discussion over to our CEO, Parque Arauco, Eduardo Pérez. I already see people in line for questions, so I will unmute you in the order of which you have raised your hand, starting with Gustavo of BTG. Gustavo, can you hear me? You are unmuted.
Hello, everyone. Good morning. Thanks for taking my question. I have one here on my side, and it's on the context of the capital increase, right? I was wondering if you could please share how are you thinking about organic versus inorganic growth opportunities across countries, right? So in other words, you could explore a little bit more on where are you seeing the best opportunities for expansions and also how are you seeing the M&A markets in each country, right? Thinking especially in terms of valuation levels and also the asset availability and the opportunities to portfolio complementarity in each of the countries. This would be my question. Thank you.
Good morning, Gustavo. Let me start by mentioning that, with this follow-on, basically we increase the investment capacity of the company from investing approximately $200 million a year to investing approximately $300 million a year. We believe we can invest this amount of money in a profitable way. Basically it's a continuation of what we have been doing in the last years, which is half of the investments will be in the expansion of our main iconic assets, so brownfield projects, organic growth. Regarding the other half, a part of the other half will be incorporating new assets, high quality assets, both in greenfields and M&A, being very selective in both. A part of the other half is multi-family projects.
It's basically continuing to do what we have been doing in the last years. Regarding the M&A question, we do see opportunities of M&A going forward. If you analyze the market in the last two decades, there's a clear consolidation trend, and we expect this consolidation trend to continue. Basically there's a very important difference between the large players and the smaller players regarding the capacity of managing the properties and the capacity of financing in a very competitive way. This is also a business with clear economies of scale. This is why when you analyze long periods of time, you will see our EBITDA growing much more than our revenues and our tenant sales. All these trends end up in small players selling assets.
However, we have business in small markets, so it's very difficult to predict when this will happen. I would add to that that we see probably more opportunities in M&A in Chile and Peru than in Colombia because, as you know, more than half of the market in Colombia are multi-owner properties that are very challenging to acquire, and the non-multi-owner properties are companies that have developed their portfolios in the last 15 years, so probably not willing to sell those assets.
Those are the colors I can give, Gustavo, but the main message is this is a continuation of what we have been doing in the last years with these three pillars of half of the investment in expanding our main assets and regarding the other half, a combination of new retail assets and multifamily.
Thank you, Eduardo. Eduardo?
Thank you. Yes, thank you, Eduardo. That was great, clear. Thank you.
Gustavo, finally, let me mention that we will update our investment plan during the first half of this year. We are working on an update. Just to give you a little bit of color there are several assets that can be expanded. Assets of which we have been working on these master plans for the growth of these assets for several years now. We will announce those projects during the first half of this year.
Great. Thank you very much. Now moving on to the next question from Morgan Stanley. Alejandra, you are now unmuted. Can you hear me?
I can hear you well. Buenos días, Eduardo, Francisco, Lauren. Thank you for taking my question. It's actually a three-part question if I may. The first part is perhaps a follow-up. You mentioned, perhaps, growth, and you've been vocal about growth in the Andean region. Just wondering if the opportunities perhaps are less, I would say scarcer perhaps at some point in time. Would that take your strategy perhaps outside of the Andean region, if that makes sense at some point? That's the first question. The second one is on your spreads. If you can provide an update on your spreads, especially because we're heading into about a renegotiation of 30% of your portfolios.
If you can talk about how that's going, if you feel comfortable with those conversations as we head into 2026 and 2027. Then the last question is, I was very curious to hear all your remarks on the energy front and seeing energy contribute more to non-property revenue this time. Just wondering if you can double-click on how you're thinking of this particular line, if you think there's more scalability here, if we're gonna see more of that. Thank you. Those are my questions.
Buenos días, Alejandra. Thank you for your question. Regarding the first one, we see as a possibility to enter a fourth country. However, we see also opportunities in the countries where we have business currently. We will analyze all of the alternatives that we have and take a good decision for the shareholders of the company. Of course, entering a fourth country is a deal with a higher risk. In order to make sense, to compensate that risk, we need also higher returns. We see opportunities in the markets where we have business. It's not obvious that it makes sense to enter a fourth country. The company, however, is well prepared for that.
For the first time in the last year, 2025, we reached an efficient scale in Peru and Colombia, meaning that the overhead expense is one digit above NOI. I think that the company is ready for taking that step. Again, I don't think that's obvious because we see opportunities in the countries where we have business. Time will tell. Okay. Regarding the leasing spread, for several years now, the evolution of the tenant sales have been very strong with growth some points above inflation. Because of that, we have been able to renegotiate our contract also some points above inflation. The contracts that are already signed have a leasing spread of inflation +2 . Okay. It's above inflation +2 .
That means that with contracts already signed, the revenues, the same area revenues of the companies will increase at least a couple of points above inflation. Because the contracts have step-up clauses that involves this natural growth in the revenues of the companies. I would expect a positive scenario on 2026. Finally, regarding energy, let me answer Alejandra this by going up one level and talking about the non-rental revenues. The non-rental revenues have been increasing much more than the rental revenues. That has been increasing, again, some points above inflation. In the non-rental revenues world, parking has been an interesting business. We're starting to charge for parking in some assets where we were not charging before.
Also the number of cars in the market where we have business have been increasing. Because of that, the other side of the equation also have been increasing. We see more visits by car, and because of that, more parking revenues. Finally, we have started to do some business more related to rental revenues, but in parking space, in those assets where it makes sense. For example, in the surroundings of the vertical transport, escalators, you start to see much more retail space than before, not only parking. Parking is one. Another is energy, as you point out.
We see a positive trend here, both because of margin, but also because of how we are managing the energy expense in our common areas. We're doing a lot of projects related to being more efficient, to measuring better our energy expense in the common areas and managing that expense, accordingly. We are also developing a lot of energy projects of solar panels in the roof of our main assets. We did seven of those projects during the year, and because of that, also the energy expense will decrease. Because those projects typically source approximately 20% of the energy expense of the asset. I would expect an improved energy margin. Finally, there are other non-rental revenues.
I would like to highlight there's the retail media business. We have been also working a lot for several years now in retail media. We are increasing the number of screens, digital screens outside the main assets in the entrance to the parking lot, in large common areas, and also in the main common areas in the halls of the main shopping centers. We're also starting to improve how we manage those screens, because we see that in more developed markets, the percentage of the advertisement specifically targeted to increasing the sales in the assets is much larger than what we have in the Andean region. In the Andean region, typically you see a general advertisement in those screens.
Let's say a Coca-Cola advertisement. In the more developed markets, more sophisticated markets, even half of the content can be specifically aimed to increasing the sales of the shopping center. We're also working in the content. All together, we expect that the non-rental revenues will grow again much more than the rental revenues that are still growing above a couple of points above inflation.
This is all very interesting. Thank you for the explanation. Muchas gracias.
Thank you, Alejandra. Now moving on to Jorel of Goldman Sachs. Jorel, you are unmuted.
Good morning. Thank you for taking my questions. I have two. One is on the capital raise, and one is on same-store sales. First off, Eduardo mentioned earlier that some of the capital will be, the intention is to use it for M&A. I just wanted to understand a little bit more about this potential M&A. Perhaps, you know, if you can give any indication about the tenor of the conversations. I wanted to get an understanding of how quickly capital can be deployed into M&A. Is it such that the conversations have developed enough that this should happen soon? Also, what are the cap rates we should be thinking about for any potential M&A? Then the second question is around same-store sales, particularly for Chile.
We saw the number came in around 3%, and they came in at 12% in 2024. This is a material deceleration. I wanna understand if this deceleration was driven by tough comps, or is this a sign of what we should expect for same-store sales going forward going into 2026? Thank you.
Mm-hmm. Thank you, Jorel, for the question. Regarding the capital raise, we expect we can deliver a profitable CapEx investment above $200 million, and in some years, reaching $300 million. As a reference, this last 2025, we were able to invest more than $400 million, yeah, in a very profitable way. Of course, the M&A was relevant in that equation because of both acquisition of Open Plaza in Chile and Minka in Peru. The base of our growth pipeline is not dependent on M&A. Let me mention that very clearly. The base of our growth is brownfield projects, expansion of our main assets. The growth strategy of the company does not depend on the possibility of closing an M&A.
If the M&A comes, it's very welcome. We are very active in the market. We are the company in our sector that has been more active in the last decade, very clearly. We have conversations with a lot of potential sellers in each of the markets where we have business. Again, these are small markets, and therefore, it's not easy to project a clear answer to your question. The growth is not based on the M&A, but the M&A should represent, let's say a quarter of the CapEx capacity of the company. Some years will be more important, some years will be less important. We plan to continue to be active in the market. Regarding pricing, it varies a lot.
Let me mention the last deals that the company have been doing. Basically in Peru, we acquired Minka at a 10% cap rate. I think it's a very good acquisition also because of the optionality of the assets. I think that the market in Peru is, let's say, between an 8% cap rate and a 10% cap rate. If you go to Chile, I think, well, we acquired Open Plaza Kennedy at a 7% cap rate, and we expect to take that figure above 8% in this year, 2026, okay? I would say that the price in Chile is between, depending on the quality of the asset, 6.5%-8.5%, okay?
Regarding Colombia, we acquired the assets two years ago at a 9% cap rate, and now that cap rate is close to the 10%, okay? I would say that in Colombia, 8%-10% is a good range in terms of cap rates. Regarding same-store sales, I would expect a negative impact because of lower Argentinians coming to shop in Chile, but a positive trend because of domestic demand. The unemployment in Chile is below 8%. The salaries are growing according to the information provided by the pension fund system, inflation plus 3%. It's a very strong salary growth. I would say that in the country there's a current environment with higher confidence levels, both in consumption and investment.
In the margin, I would expect, also because of expectations, a healthy internal consumption that should compensate for the decreased sales of Argentine tourists and an increase in our expectation and a scenario of inflation plus something in the sales of our tenants.
Very clear. Thank you.
Okay, Jorel Guilloty.
Thank you, Jorel. Now going to Marcelo Motta from JP Morgan. Marcelo, you are now unmuted. Interesting.
Yes. Can you guys hear me?
Yes. Hi, Marcelo.
Hi, Marcelo.
Hi. Thank you for taking the questions. Like, first one, just because you said you're looking at the fourth country, you know, does it need to be like a Hispanic speaking country or, you know, could be any country in the region? You know, as a Brazilian, I feel like I must ask this one. Second one regarding, you know, the G&A. You comment about, you know, a couple of one-offs there. So, if you could provide, you know, a view on what would be the recurring level of G&A excluding these one-offs that were sold. So those would be the two questions. Thank you.
Okay. Regarding the first country, let me be very clear here. We are not actively seeking a fourth country, but we are open to analyzing that alternative, okay? We will compare the risk return profile of that possible investment with the risk return profile of alternatives we have in the countries where we have business, okay? Definitely it's. If that happens, it will happen in the region and not outside the region. Regarding SG&A, it's important to mention, Marcelo, that we did a relevant reorganization some months ago in Parque Arauco. Because of that, basically we did the reorganization because not because of efficiency reasons, but because of we want an organization that is more agile.
Basically what we did is centralizing all the support teams that were not centralized. The finance function was very centralized, but the legal function and the people function was not centralized. We took the step of centralizing the legal and the people function. That created more specialization also. From that movement, I would expect a double impact of both higher efficiency but also higher specialization. Similar to what we did in the finance centralization several years ago. Regarding the other business functions, the main responsibility remains at the division level, at the country table, at the country level and not the corporate level. We simplified the structure because some decisions were taking too long to take. We simplified the organization.
Because of this, we had one-time nonrecurrent expenses above CLP 3,000 million, okay? Because of this, we expect also a lower people expense for year 2026. Let me give you here a little bit of color regarding results. For 2026, we expect revenues growing at high single digits%. We expect an improved EBITDA margin that ends up with our EBITDA growing at two digits%, okay? The reorganization partly explain that margin expansion.
Super clear. Thank you very much.
Okay, Marcelo.
Thank you, Marcelo. Now I am unmuting Felipe from Santander. Hi, Felipe.
Hi, everyone. Can you hear me?
Yes.
Great. I actually have three questions. I'll shoot the first one regarding the capital increase. Do you plan to raise $330 million but your investment plans are for $140 million for the next three years? Additionally, it looks like you could raise another $300 million or so in debt as your leverage is overstated due to last year's acquisitions. All of this is not including that perpetual debt of about $220 million net of interest. When we look at the use of proceeds, are the funds planned to be used in projects you already had in the pipeline or have in the pipeline but haven't disclosed yet or will the funds be used more opportunistically?
Additionally, is increasing your net debt to EBITDA to 6x still on the agenda or like an opportunity? The idea behind the capital increase would be to not further leverage the company.
Good morning, Felipe. Let me mention here that this is a follow on for further, yeah, increasing the growth of the company, not for deleveraging the company, okay? Our financing strategy remains constant, the same that what we have had for the last decade now. We see as an optimum the net debt to EBITDA of 5-5.5, okay? This follow on represent approximately 1 EBITDA. Our net debt to EBITDA will decrease from 5.3-4.3 levels, okay? Regarding the first part of the question, we do have a very clear growth strategy, which is based on the growth of our main assets. We have been working with this in the last three years now.
We have announced only the growth of Parque Arauco Kennedy and the growth of MegaPlaza Independencia and MegaPlaza Ica. New phases of Parque Arauco Kennedy should come. New phases of MegaPlaza Independencia should come. We will also announce the expansion of other assets different than these two. These are plans that we have been working for several years now. The growth pipeline I would say is very clear for the next few years, less clear for the year number five and onwards. The follow-on, again, is for growth, not for deleverage. The growth is very clear with the base of this growth plan in the expansion of our existing assets that we will gradually announce during the first half of this year.
If I can complement that answer. Today, the CapEx that is shown in the quarterly report had a remaining investment of $138 million. In a normal year, Parque Arauco has the ability, the capability to invest from $200-$250 million per year. The announcement that we have made in CapEx is clearly shorter than the capability of Parque Arauco without the capital increase. The capital increase will come to boost our growth in the following years, and with that we will have more space for new assets. The thing is that in Parque Arauco we follow the strategy of being very conservative on our announcements. We only announce projects when we already have the permits and the probability to achieve the investment is very high.
We don't like announcement that then doesn't turn to a reality. That is important in our strategy of what we have announced, and we are aiming to make more investment announcement in the future.
Thank you. Thank you very much. That very clear. Regarding results, if you could please give more color on the increasing the minority interest, that would be very helpful. Also, when I look at the NOI for assets per country, and then I try to match it with this adjusted NOI per country, it looks like a lot of this higher expenses for the quarter came from like the corporate side, maybe not from the actual assets. If you could also give more color about that would be very helpful. Thank you.
I'll take the first, Eduardo here. Felipe, I'll take the second one, and Francisco, the minority interest one. This reorganization that we did involves higher expenses at the corporate level because of the centralization of both the legal and the people function, and also because of the strengthening the technology team. Okay. Overall, it creates efficiency of people expense decreasing at high single-digit levels. Okay. It does create a higher corporate expense. There again, we seek a higher efficiency and higher specialization and having the best of course both worlds.
Yes. Regarding the minority interest, if I understood well the question, the minority interest in Parque Arauco is mainly Mall Marina. It had a very good year in 2025. The increase in EBITDA and net income was also very positive as well as what we saw in Chile. As you know, Mall Marina owns a big mall in Viña del Mar, but also has assets in Concepción and Curicó, secondary cities in Chile. So we're seeing kind of the same trend for Mall Marina than for Parque Arauco. We also have other participation, but they're quite small and the main minority interest that we have in the income statement is coming from Mall Marina. I don't know if that answered your question or you have your own question.
Yeah. Sorry, I didn't assume myself correctly. I meant not the participation associate companies. I meant like the minority interest that you guys consolidate. That was the CLP 38 trillion expense.
Yes. Okay. Yeah. The growth of net income for the minority interest is different from the controlling group because of the fair value revaluation that we do at the end of the year is different asset by asset. It happened that this year the revaluation that is concentrated in Colombia was quite positive, and with that we had an increasing growth of the minority interest.
In Colombia, we have partners in most of the assets.
Okay. This explains why it was four times higher than last year then, right? Yeah. Thank you. Thank you very much. Have a good day.
Thank you.
Thank you, Felipe. We have a written question from Vicente Gonzá lez, which I believe we have talked a lot about, but perhaps Eduardo or Francisco wanna do some closing remarks on it, which is: Can you give some details on what the capital increase is going to be used for? I don't know if you wanna close the call with.
Just to highlight, the first message is a continuation of the strategy. We see very attractive risk-return profiles in the expansion of our main assets. From the risk point of view, we have the price points of both the sales per square meter and the rents per square meter right there, and therefore the estimates that we do tend to come to reality. On the return point of view, we already have the piece of land. Typically it's a piece of land that cannot be sold, and therefore the marginal return for the marginal investment is very attractive also. Finally, from a strategic point of view, strengthening the assets also, we believe is a good idea because it creates a better value proposition for the end customer.
This is why half of the investment capacity of the company will be the expansion of our main assets. It's mainly organic growth that we will gradually announce, and with the first announcement of that during the first half of this year. The remaining part is both incorporating new assets both in M&A and greenfield projects, but again, being very selective and incorporating new multifamily projects in this new phase. Most of the projects will come from multifamily buildings inside our main properties.
Thank you very much, Francisco and Eduardo and everyone for your questions today. If you have any additional questions or would like to set up a meeting, please do not hesitate to reach out. Thank you very much for attending the Q4 2025 conference call. We will see you in April for the first quarter 2026 conference call. Have a great day, everyone. Thank you very much.