Iguatemi (IGTI11), a Brazilian company in the shopping center sector, released its financial results for the first quarter of 2024, highlighting an adjusted profit of R$108.4 million, an increase of 63% compared to the same period of the previous year .
The company’s adjusted Ebitda reached R$225.7 million in 1Q24, marking a growth of 13.4% compared to the previous year. The adjusted Ebitda margin increased to 74.1%, representing an improvement of 4.8 percentage points. This positive performance was driven by the increase in Gross Revenue, especially in the areas of Temporary Rental, Percentage Rent, Parking and Others (Shopping), in addition to an increase in Other Operating Revenue.
Iguatemi’s adjusted FFO reached R$153.669 million, registering an increase of 38.7%, with the adjusted FFO margin reaching 50.5%, an increase of 11.9 percentage points.
Iguatemi (IGTI11)
In relation to adjusted net revenue, the company recorded a value of R$304.1 million in 1Q24, an increase of 6.1% compared to the same period of the previous year. This growth was driven by the performance of the main revenue lines and units, such as Temporary Rental, Percentage Rent, Parking and Others (Shopping).
Same store sales (SSS) and same area sales (SAS) increased 7.3% and 10.3%, respectively, in 1QR24 compared to 1QR23. Same-store rents (SSR) increased by 5.5%, while same-area rents (SAR) grew by 3.7% in the same period. The occupancy rate also increased by 1.4 percentage points, reaching 94.1% in the first quarter of 2024.
In relation to the guidance provided at the beginning of the year, the company reported that it remains unchanged until the end of 2024. Leverage recorded a drop, remaining at 1.84x compared to 4QR23.
XP Investimentos
XP Investimentos wrote, in a report, that the company reported solid results, in line with expectations. Key operational highlights include:
an increase in sales of 10.3% compared to the previous year (above forecasts), with growth projections of +10%¹ for April;
SAS reached 10.3% (+3.0 pp vs. SSS), driven by robust year-on-year occupancy growth; It is
SSR recorded an increase of 5.5%, driven by leasing spreads of +6% on renewal contracts.
In the financial sphere, the highlights were:
a net revenue 3% above estimates, benefiting from a robust performance in parking (+24% YoY) and a solid performance in temporary rentals, despite pressure on minimum rent;
EBITDA in line with forecasts, driven by lower shopping costs and a maintained balance in retail; It is
a 39% YoY growth in FFO (+2% vs. XPe), with financial expenses decreasing 17% compared to the previous year. We continue to recommend Iguatemi as a top pick, rated buy, with a target price of R$32.5 per share.
