By Brazil Stock Guide – Iguatemi S.A. (B3: IGTI11) delivered another quarter of solid operational momentum in the third quarter of 2025, with total sales surging 22.5% year-on-year to R$ 6.0 billion. The performance was driven by the consolidation of the Rio Sul and Pátio Paulista malls and the continued recovery of premium retail segments. Same-area sales advanced 9.0%, outpacing inflation by 3.8 percentage points, while same-store sales rose 5.8% despite a tougher base in southern Brazil after last year’s floods.
Strong rental revenue and leaner costs lift margins
Gross revenue climbed 17.9% to R$ 432.2 million, and adjusted net revenue reached R$ 381 million, up 17.7% from a year earlier. Adjusted EBITDA rose 20.6% to R$ 302.4 million, yielding a margin of 79.4%. Net income increased 8.8% to R$ 128.9 million, while adjusted FFO slipped 3.6% to R$ 160.3 million.
Rental growth remained robust — same-area rent (SAR) rose 7.5%, above the IGP-M inflation index, helped by lower discounts and higher variable rent. The occupancy rate stood at 96.1%, near record highs, and net delinquency stayed in negative territory, highlighting the company’s healthy tenant mix and disciplined collection policy.
Portfolio rotation keeps leverage under control
During the quarter, Iguatemi concluded the sale of minority stakes in the Pátio Paulista (10%) and Pátio Higienópolis (7%) malls for a combined R$ 414 million to FUNCEF and RBR, recycling capital after its R$ 700 million investment in both assets earlier in the year. The proceeds followed the June sale of 49% of the Market Place and Galleria complexes, which freed R$ 500 million. Leverage fell to 1.64× net debt/EBITDA, down 0.26 turns from the previous quarter, or 1.84× excluding gains from asset sales.
Expansions and new brands underpin growth outlook
The company also announced a partnership with H&M to open four stores totaling 8,000 m² across Iguatemi Porto Alegre, Praia de Belas, Esplanada, and RIO SUL malls, marking the fast-fashion chain’s debut in Brazil. Other openings — including Moncler, Alo Yoga, Chanel Beauté, and Carolina Herrera — underscore Iguatemi’s positioning as the preferred gateway for global luxury brands.
With a third-quarter CAPEX of R$ 191 million and guidance reaffirmed for 2025, the group expects higher investment execution in the final quarter and maintains its forecast of 7–11% revenue growth and 75–79% EBITDA margin for the year.
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