While revenues were up 16% compared to the same quarter in 2022, EBITDA rose 13% and visits did so by 6% versus the previous year.
Mallplaza has one of the best urban center portfolios in the region, with 25 Plazas strategically located in 16 cities.
Santiago, 29 August 2023.- Mallplaza closed a successful second quarter in terms of financial performance, with record revenues of CLP 102,990 MN, up 16% over the same quarter in 2022. As reported to the CMF, EBITDA reached CLP 78,805 MN, growing 13.3% compared to the previous year, with operational efficiency of 76.5%. For their part, net profits, were CLP 167,147 MN, an increase of 102.7%, and achieving a net margin of 162.3%. Lastly, FFO grew by 30.5% compared to 2Q22, reaching CLP 64,718 MN with a 62.8% margin over revenue.
“We have bet on a value proposition that privileges socialization, habituality and multiple reasons to visit, with a robust retail proposition, with a robust retail proposition that considers the incorporation of new brands that are highly valued by our visitors like Ikea, Decathlon and H&M; an innovative and competitive culinary and entertainment offering and the successful conversion of Large Stores, 80,000 m2 in the last three years, which has allowed us to bring in new differentiating services and brands,” explained Plaza S.A. CEO Fernando de Peña.
The success of this strategy is reflected in the results Mallplaza obtained in the second quarter of 2023, during which time its urban centers received 68 million visitors, a 6% increase over 2Q2022, in addition to improved levels of efficiency compared to the first quarter of the year, lending continuity to the strong performance shown in the previous quarters. “The attractiveness of our urban centers has allowed us to maintain a performance that is superior to the market in low-consumption scenarios like what is currently seen in Chile, Peru and Colombia. For example, sales by Mallplaza’s tenants in the Metropolitan Region, Chile are on average 10 percentage points higher than retail sales over the last four quarters,” added De Peña.
Portfolio of urban centers
“Mallplaza has one of the best urban center portfolios in the region, with 25 Plazas strategically located in 16 cities.” In particular, De Peña highlighted the value proposition of the company’s 10 Tier A urban centers, which represent 64% of EBITDA. These are assets that generate a greater return on investment and are in a strong competitive position, with high visitor flows, growth potential and a high productivity of leasable area.
In Chile, Mallplaza has 6 of the top 10 assets in terms of GLA, sales and revenues per square meter. And the proportion is even larger if the top 15 or 20 are considered.
Successful performance
Mallplaza highlights the successful performance of the gastronomy and entertainment offering during the reporting period, which as a business vertical represents 14% of GLA. Within this group, the strong quarterly performance in Cinemas segment stands out, where, for example, 47% growth was observed in 2Q2023 in Chile, associated with a renewed offering and the positive reception of the IMAX theaters in Mallplaza Vespucio and Mallplaza Egaña.
Mallplaza has set out to provide a full offering to each market, strengthening its urban centers as spaces of encounter, socialization and enjoyment. For example, in the first half of the year, Mallplaza Vespucio achieved 33% growth in entertainment and gastronomy sales compared to the same period the previous year.
Mallplaza also reported that it adopted a change in accounting policy because the Company considers that using the fair value model for its investment properties as of 1H23 will more adequately reflect the company’s equity and economic situation and allow it to be compared with other national and international real estate companies.
