Allos (ALOS3) plans to divest up to R$1 billion, after a profit of R$91 million in the 1st quarter

Allos (ALOS3) announced this Thursday a divestment plan that could generate up to 1 billion reais in resources, according to the company, in parallel with the release of net profit of 91.1 million reais in the first quarter.

The plan, approved by the shopping center operator’s board of directors, includes total and partial divestments in assets that, together, total up to 1 billion reais.

The measure, said Allos, is in line with the company’s strategy of concentrating its participation in shopping malls that it considers relevant and “capable of delivering compound growth in the long term”. Along with this, the company announced the full sale of its stake in Top Shopping, in the State of Rio de Janeiro, for 111.5 million reais.

Due to the new plan, the company said it revised its projection for leverage, measured by the ratio between net debt and EBITDA, to 1.4 times to 1.9 times. Previously, the expectation was for an indicator between 1.9 times and 2.3 times.

The Allos board also approved the acquisition of up to 15% of Shopping Rio Sul, also located in Rio, through one or more operations. The acquisition still depends on the fulfillment of precedent conditions, such as approval by the Administrative Council for Economic Defense (Cade).

Allos (ALOS3): results

Allos reported its results for the first quarter of the year on Thursday night, with a net profit below the average market expectation, which was 118.7 million reais, according to projections compiled by LSEG.

The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled 453.3 million reais in the period, growth of 9.7% year-on-year. The adjusted EBITDA margin was 72.8%, compared to 72.1% a year earlier.

Net revenue recorded in the three months ended in March totaled 622.5 million reais, an increase of 8.7% year on year. Adjusted, the company’s net revenue totaled 616.4 million reais (+6.5%).

Allos, the result of a merger between Aliansce Sonae and brMalls, also announced the implementation of a new buyback program of up to 20 million shares, equivalent to up to 3.9% of the company’s capital, with a term of one year.

“After announcing divestments in 10 shopping malls, 6 total and 4 partial, in the amount of 1.8 billion reais at attractive valuations, Allos will continue to take advantage of market conditions to repurchase shares of its own issue, reinforcing its well -successful capital allocation strategy”, he stated in a relevant fact.

Regarding these recent divestments, previously announced, Allos said in a statement that so far 1.5 billion reais have been received between the fourth quarter of last year and May of this year.