- The company reported growth in sales (+0.5%), revenues (+9.4%), EBITDA (+14.9%) and FFO (+11.7%) in 4Q2023 compared to the same quarter of the previous year.
- In addition, it ended the fourth quarter with an efficiency of 76%, a remarkable improvement over 4Q2022 (72%), and it achieved the highest occupancy in the last four years at the regional level (95.8%).
- Mallplaza opened about 600 new stores regionally in 2023, underscoring tenants’ interest and confidence in being part of its urban centers in Chile, Peru and Colombia.
Santiago, 27 February 2024 – With a historic occupancy of 95.8% regionally, the highest in the last four years, Mallplaza closed 2023 marked by the implementation of a business strategy aimed at promoting winning propositions in its 25 leading urban centers in the region, 10 of which are Tier A due to their size, strong performance and dominance in their respective markets, gaining the preference of visitors and tenants.
Regarding its financial results, Mallplaza reported that it registered growth in revenues (+9.4%), EBITDA (+14.9%), FFO (+11.7%) and sales (+0.5%) in 4Q2023 compared to the same quarter the year before. This last result reveals a constant resilience of retail sales in general, which suffered a -5% drop in the Metropolitan Region of Santiago during the reported period and is explained by the positive performance of the Specialty Retail, Gastronomy and Entertainment segments.
“Without a doubt, 2023 was a year of growth, renewal of the value proposition and consolidation of results for Mallplaza. We managed for all our urban centers to provide multiple reasons to visit during the period, with new brands, services and categories thanks to a growth and transformation strategy, especially in our Tier A centers. In addition, the opening of almost 600 stores reflects the growing interest on the part of new and major brands like Inditex, Ikea, H&M and Decathlon to be a part of Mallplaza and in that way bring their businesses to the Andean region or else expand them,” Plaza S.A. CEO Fernando de Peña explains.
The strategy’s success was reflected in the operational results, which allowed Mallplaza to end 4Q2023 with an efficiency of 76%, a remarkable improvement over 4Q2022 (72%), and close the year with an EBITDA margin of 77%. This was also accompanied by the efficiency plan that the company has promoted, in which the 34.8% drop in Administrative Expenses stands out.
Growth through Greenfield, Brownfield and M&A
Growth is part of Mallplaza’s DNA and one of the pillars of its strategy. Thus, progress continued to be made along these lines in 2023, with the transformation of its Tier A centers’ value propositions yielding immediate results. For example, Mallplaza Vespucio increased visitor flow by 9%, Mallplaza NQS stood out for its growth in sales, which were up 82% over 2022, and Mallplaza Oeste completed consolidation of its commercial proposition, increasing its revenues per m2 leased by 11% versus 2022.
Meanwhile, construction of the greenfield project Mallplaza Cali continues to progress. This new shopping center, with 67,000 m2 of GLA, is now close to opening and has commercialized 91% of its spaces.
Regarding Brownfield projects, work began on Lifestyle in Vespucio, with an additional 21,600 m2, while in terms of M&As, consolidation of Mallplaza NQS continues, a shopping center acquired in 2020 that already has 76,000 m2 of renewed commercial offering, including Colombia’s first IKEA store.
As for its ongoing search for opportunities in Latin American markets, Mallplaza signed an MoU in the last quarter of 2023 for the eventual acquisition of Falabella’s real estate business in Peru, which groups together Mallplaza Peru’s real estate businesses (66.6% stake) and Open Plaza Peru. “The company is currently in a solid financial position and has a robust balance sheet, closing 2023 with a Financial Debt-to-EBITDA ratio of 3.4 times and a predominantly long-term financial debt repayment profile (average duration of 8 years), which allows us to take advantage of possible acquisition opportunities that the market may offer,” Fernando de Peña explains.
Digital flows in urban centers
Mallplaza also closed the year with record numbers of orders delivered through omnichannel services like Click & Collect, Cross Docking and Dark Store, which continue to generate digital flows to our urban centers.
Over 2.4 million transactions were made in 2023, representing over USD 87 million in sales by sellers, doubling the previous year’s amount. C&C registered a total of 548,000 packages, adding functionalities such as drop-off and return points for stores and consumers. In addition, over 6 million contactable customers were achieved in Chile, Peru and Colombia, and the first Dark Store, with 487 m2 opened in Mallplaza NQS. All the above allowed omnichannel initiatives to reach their points of equilibrium, including amortization of investments.
These results show that Mallplaza remains on the industry cutting-edge in omnichannel matters in the Andean markets it competes in.
