SANTIAGO, Chile--(BUSINESS WIRE)--Parque Arauco S.A. (Santiago Stock Exchange: Parauco; Bloomberg: PARAUCO:CI), one of Latin America’s leading shopping center developers and operators, reported financial results for the full year and fourth quarter ended December 31, 2013. The following financial and operating information, unless otherwise indicated, was prepared and presented in accordance with IFRS. Accordingly, we no longer consolidate the financial statements of three of our malls: Marina Arauco, Boulevard Marina Arauco and Mall Center Curico, but now account for our interests under the equity income method. 2012 has been adjusted for comparison purposes. For a more detailed review of these results and the filing with the SVS (Chilean Securities and Exchange Commission), please visit Parque Arauco’s website www.parauco.com.
- Net profit attributable to the equity holders of the company totaled Ch$ 55,280 million, a 51.8% increase over 2012. Net profit totaled Ch$50,016 million, a 12.8% increase over 2012.
- EBITDA grew 14.1% to Ch$74,456 million on an EBITDA margin of 69.4%.
- Funds from Operation (FFO) increased 21.3% over 2012, reaching Ch$56,635 million.
- 2013 revenues increased 14.9% over 2012, reaching Ch$107,319 million; consolidated occupancy rate of 93.7%.
- 23.9% increase in total Gross Leasable Area (GLA) to 693,100 m2 with the incorporation of seven new shopping centers and the completion of expansions of existing properties.
- Continued diversification of portfolio with the acquisition of Strip Center Ciudad Empresarial in Chile, Lima Outlet Center in Peru and the initiation of the construction of two outlet malls and two strip centers in Chile.
- Board of Directors approved a capital increase of Ch$ 115,000 million, to take place in the first quarter of 2014 in order to finance the company´s growth plan.
- 196.3% increase in the value of the strategic landbank in 2013 to enable future growth in all three countries.
“Parque Arauco delivered strong revenues and operating results, and registered double digit growth in tenant sales in all three countries in which we operate. Overall, GLA increased by 24% to 693,100 m2 as compared to the same period in 2012, while we delivered a steady EBITDA margin despite the number of new properties and expansions inaugurated during the year. We continued to deliver on our strategy of both regional and format diversification and saw Colombia’s participation of total revenues and EBITDA continue to grow. We also continued to set new standards in the region with the launch of Arauco Mapps, and the inauguration of the first Luxury District in Chile, which has thus far delivered results beyond our expectations.”
“We are optimistic about the continuing long term opportunities for Parque Arauco. Our strong operations and innovative formats are proving a successful formula for growth. During 2013 we significantly increased our strategic land bank in Chile, Peru and Colombia and our Board of Directors approved a capital increase to fortify our capital structure, ensuring the company´s future growth” said Executive Vice President Juan Antonio Álvarez.
Revenues for 2013 grew to Ch$ 107,319 million, a 14.9% increase as compared to 2012. The growth was primarily the result of additional GLA as well as improved tenant sales in all three countries in which Parque Arauco operates; Chile, Peru and Colombia. Total GLA for the company at the end of 2013 increased to 693,100 m² as a result of the additions of Mall Arauco Quilicura and Strip Center Ciudad Empresarial in Chile, MegaPlaza Express Chincha, MegaPlaza Cañete, MegaPlaza Barranca, and Lima Outlet Center in Peru and Parque Caracolí in Colombia. Additionally, the expansions of Parque Arauco Kennedy in Chile, and MegaPlaza Norte and Parque Lambramani in Peru, contributed to the Company´s GLA growth. Consolidated occupancy remained stable at 93.7%. Total tenant sales for the year increased by 13.7% to Ch$ 1,156,657 million.
The Company continues to fortify its portfolio diversification and regional expansion strategy. During 2013 Parque Arauco increased GLA of outlet malls and strip centers by 21.9%. Furthermore the Company began construction on two strip centers and two outlet malls in Chile and is renovating and expanding the Lima Outlet Center in Peru, projects that will add over 20,000 m2 of GLA to the portfolio by the end of 2014.
Revenue participation of assets outside of Chile continues to evolve and in 2013 revenues from Colombia represented 7.2% at Ch$ 7,699 million, up from 3.7% in 2012. During 2013, revenues from Chile were Ch$ 75,584 million, accounting for 70.4% of the total and revenues from Peru were Ch$ 24,035 million, accounting for 22.4% of the total.
Operating income in 2013 increased 12.7% to Ch$ 71,675 million, while administration expenses increased to Ch$ 13,337 million. The main drivers for the increase in administration expenses were an amortization related to the acquisition of the Buenaventura Premium Outlet Mall and other expenses related to additional GLA.
The Company reported EBITDA of Ch$ 74,456 million in 2013, a 14.1% increase over 2012. The consolidated EBITDA margin was 69.4%, slightly lower than the previous year’s margin of 69.9% due to the higher number of new shopping centers in the company´s portfolio that are still in the process of maturation.
Colombia’s EBITDA participation for the year grew substantially, from 1.3% to 4.9%, as compared to 2012. 2013 EBITDA was Ch$ 56,711 million in Chile, Ch$ 14,132 million in Peru and Ch$ 3,613 million in Colombia.
In 2013, net profit increased 12.8% to Ch$ 50,016 million. Net profit attributable to equity holders of the company increased 51.8% in 2013 and the earnings per share rose from Ch$ 51.82 to Ch$ 78.66. The weighted average number of shares outstanding during the year did not change and remains at 702.75 million. FFO (“Funds from Operations”) for 2013 was Ch$ 56,635 million, as compared to Ch$ 46,673 million in 2012, representing a 21.3% increase.
The company will conduct a conference call to review the 2013 results March 3, 2014 with a live webcast available through its website. A real-time webcast of these results will be available online at http://services.choruscall.com/links/parque140228.html beginning at 10:00 a.m. Eastern time/12:00 p.m. Santiago.
| Key Performance Indicators | |||||||||||||||||||
| 4Q13 | 4Q12 | Chg.% | 2013 | 2012 | Chg.% | ||||||||||||||
| EBITDA Margin % | 68.8% | 69.0% | -20 b.p | 69.4% | 69.9% | -50 b.p. | |||||||||||||
| Net Income Margin % | 88.7% | 42.3% | 4640 b.p. | 51.5% | 39.0% | 1250 b.p. | |||||||||||||
| FFO (Ch$ Millions)1 | 21,206 | 10,746 | 97.3% | 56,635 | 46,673 | 21.3% | |||||||||||||
| FFO Margin % | 66.2% | 39.5% | 2670 b.p. | 52.8% | 50.0% | 280 b.p. | |||||||||||||
| Total Tenant Sales (Ch$ Millions)2 | 358,421 | 308,632 | 16.1% | 1,156,657 | 1,017,039 | 13.7% | |||||||||||||
| Total GLA (m2)3 | 693,100 | 559,242 | 23.9% | 693,100 | 559,242 | 23.9% | |||||||||||||
| Own GLA (m2)3 | 520,518 | 421,121 | 23.6% | 520,518 | 421,121 | 23.6% | |||||||||||||
| Weighted Avg. Shares (Millions) | 702.75 | 702.75 | 0.0% | 702.75 | 702.75 | 0.0% | |||||||||||||
| EPS ($) | 40.42 | 16.34 | 147.4% | 78.66 | 51.82 | 51.8% | |||||||||||||
| Stock Price (Ch$) | 965 | 1,185.5 | -18.6% | 965 | 1,185.5 | -18.6% | |||||||||||||
|
Daily Traded Volume (Ch$ Millions) |
1,328 | 1,146 | 15.9% | 1,333 | 983 | 35.6% | |||||||||||||
|
1. FFO = Net Profit - Depreciation & Amortization - Income (loss)
for indexed assets and liabilities - Negative Goodwill - Gains
(losses) from the difference between the previous book value and the
fair value of financial assets - Deferred Taxes
2. Total Tenant Sales = Sales of Consolidated Assets 3. GLA of Marina Arauco not considered |
| Income Statement - Consolidated | ||||||||||||||||||||
| Ch$ Thousands | 4Q13 | 4Q12 | Chg. % | 2013 | 2012 | Chg. % | ||||||||||||||
| Revenues | 32,022,966 | 27,174,391 | 17.8% | 107,318,830 | 93,397,036 | 14.9% | ||||||||||||||
| Cost of Sales | (6,462,743) | (5,457,463) | 18.4% | (22,307,202) | (19,693,435) | 13.3% | ||||||||||||||
| Gross Profit | 25,560,223 | 21,716,928 | 17.7% | 85,011,628 | 73,703,601 | 15.3% | ||||||||||||||
| Administration Expenses | (4,258,926) | (3,328,186) | 28.0% | (13,336,635) | (10,113,735) | 31.9% | ||||||||||||||
| OPERATING INCOME | 21,301,297 | 18,388,742 | 15.8% | 71,674,993 | 63,589,866 | 12.7% | ||||||||||||||
| Depreciation & Amortization | (719,104) | (355,778) | 102.1% | (2,781,469) | (1,650,922) | 68.5% | ||||||||||||||
| EBITDA | 22,020,401 | 18,744,519 | 17.5% | 74,456,462 | 65,240,789 | 14.1% | ||||||||||||||
| Other Income / Expenses | (1,624,235) | (2,141,864) | -24.2% | (6,393,858) | (2,933,696) | 117.9% | ||||||||||||||
| Financial Income | 1,235,033 | 1,133,943 | 8.9% | 3,983,554 | 7,477,320 | -46.7% | ||||||||||||||
| Financial Expenses | (5,356,601) | (4,577,670) | 17.0% | (19,150,007) | (19,062,501) | 0.5% | ||||||||||||||
| Share of Profit (Loss) of Associates Accounted | 5,833,555 | 2,147,649 | 171.6% | 9,663,436 | 5,544,631 | 74.3% | ||||||||||||||
| Foreign Exchange Differences | (684,806) | (101,975) | 571.5% | (279,889) | (595,228) | -53.0% | ||||||||||||||
| Income (Loss) for indexed assets and liabilities | (2,312,843) | (2,493,914) | -7.3% | (5,129,628) | (5,254,523) | -2.4% | ||||||||||||||
|
Gains (losses) from the difference between the |
||||||||||||||||||||
|
previous book value and the fair value of financial assets |
4,459,032 | 16,020,489 | -72.2% | 4,459,032 | 16,020,488 | -72.2% | ||||||||||||||
| NON-OPERATING INCOME (EXPENSES) | 1,549,135 | 9,986,658 | -84.5% | (12,847,360) | 1,196,491 | -1173.8% | ||||||||||||||
| Profit before Income Tax | 22,850,432 | 28,375,398 | -19.5% | 58,827,633 | 64,786,357 | -9.2% | ||||||||||||||
| Income Tax | (2,583,423) | (11,270,032) | -77.1% | (8,811,313) | (20,429,518) | -56.9% | ||||||||||||||
| NET PROFIT (LOSS) | 20,267,009 | 17,105,366 | 18.5% | 50,016,320 | 44,356,839 | 12.8% | ||||||||||||||
| Attributable to: | ||||||||||||||||||||
| Equity holders of the company | 28,408,539 | 11,481,785 | 147.4% | 55,280,589 | 36,417,448 | 51.8% | ||||||||||||||
| Minority interests | (8,141,530) | 5,623,581 | -244.8% | (5,264,269) | 7,939,391 | -166.3% | ||||||||||||||
| NET PROFIT (LOSS) | 20,267,009 | 17,105,366 | 18.5% | 50,016,320 | 44,356,839 | 12.8% | ||||||||||||||
| Balance Sheet | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| Ch$ Millions | |||||||||||||||||
| Assets | Liabilities | ||||||||||||||||
| Current Liabilities | |||||||||||||||||
| Current Assets | Other Current Financial Liabilities | 35,726 | 36,330 | ||||||||||||||
| Comm. Cred. and Other Acc. Payable | 20,428 | 18,346 | |||||||||||||||
| Cash and Cash Equivalents | 68,946 | 103,782 | Current Acc. Payable to Rel. Parties | 1,902 | 1,994 | ||||||||||||
| Other Current Financial Assets | 0 | 0 | Current Provisions | 9,002 | 6,328 | ||||||||||||
| Other Current Non-Financial Assets | 3,149 | 2,964 | Tax Liabilities | 5,083 | 4,936 | ||||||||||||
| Trade Accounts Rec. and Other Rec. | 18,886 | 21,685 | Other Current Liabilities | 3,923 | 2,733 | ||||||||||||
| Accounts Receivable from Rel. Comp. | 4,836 | 4,198 | Total Current Liabilities | 76,064 | 70,666 | ||||||||||||
| Current Tax Receivable | 21,291 | 13,041 | |||||||||||||||
| Total Current Assets | 117,108 | 145,671 | Non-Current Liabilities | ||||||||||||||
| Other Non-Current Fin. Liabilities | 405,652 | 318,804 | |||||||||||||||
| Non-Current Liabilities | 0 | 0 | |||||||||||||||
| Non-Current Acc. Payable to Rel. Part. | 0 | 1,476 | |||||||||||||||
| Non-Current Assets | Deferred Tax Liabilities | 75,999 | 62,507 | ||||||||||||||
| Other Non-Current Liabilities | 8,934 | 7,674 | |||||||||||||||
| Other Non-Current Financial Assets | 0 | 0 | |||||||||||||||
| Other Non-Current Non-Fin. Assets | 26,458 | 10,728 | Total Non-Current Liabilities | 490,585 | 390,461 | ||||||||||||
| Non-Current Accounts Receivable | 808 | 233 | |||||||||||||||
| Non-Current Acc. Rec. with Rel. Part. | 542 | 1,802 | Total Liabilities | 566,649 | 461,128 | ||||||||||||
| Share of Profit (Loss) of Associates Accounted | 49,634 | 41,339 | |||||||||||||||
| Intangible Assets exc. Surplus Value | 14,988 | 16,258 | Equity | ||||||||||||||
| Surplus Value | 15,629 | 2,964 | Issued Share Capital | 229,907 | 229,907 | ||||||||||||
| Property, Plant and Equipment | 2,724 | 2,448 | Accumulated Earnings (Losses) | 290,550 | 251,255 | ||||||||||||
| Investment Properties | 947,839 | 814,292 | Other Reserves | (10,113) | (8,729) | ||||||||||||
| Deferred Tax Assets | 26,225 | 15,630 | Attrib. to Shareholders of the Company | 510,344 | 472,433 | ||||||||||||
| Minority Interest | 124,963 | 117,806 | |||||||||||||||
| Total Non-Current Assets | 1,084,848 | 905,695 | Total Equity | 635,307 | 590,239 | ||||||||||||
| TOTAL ASSETS | 1,201,956 | 1,051,367 | TOTAL LIABILITIES AND EQUITY | 1,201,956 | 1,051,367 | ||||||||||||
SUMMARY OF KEY PROPERTY OPERATIONS
2013
|
Chile in MMCLP/ Perú in |
GLA | Sales | Revenues | EBITDA | ||||||||||||||||||||||||||||||||
|
MPEN/Colombia in MMCOP |
2013 | 2012 | Chg. % | 2013 | 2012 | Chg. % | 2013 | 2012 | Chg. % | 2013 | 2012 | Chg. % | ||||||||||||||||||||||||
| Parque Arauco Kennedy | 115,200 | 108,000 | 7% | 349,560 | 365,952 | -4% | 36,297 | 35,323 | 3% | 33,270 | 32,084 | 4% | ||||||||||||||||||||||||
| Arauco Maipú | 74,000 | 74,000 | 0% | 153,117 | 113,634 | 35% | 11,360 | 10,088 | 13% | 10,567 | 8,673 | 22% | ||||||||||||||||||||||||
| Plaza El Roble | 25,000 | 25,000 | 0% | 62,707 | 61,148 | 3% | 4,231 | 4,225 | 0% | 3,316 | 3,538 | -6% | ||||||||||||||||||||||||
| Paseo Arauco Estación | 68,000 | 68,000 | 0% | 99,379 | 92,194 | 8% | 13,267 | 13,249 | 0% | 11,508 | 11,572 | -1% | ||||||||||||||||||||||||
| Arauco San Antonio | 29,000 | 29,000 | 0% | 31,594 | 30,621 | 3% | 3,460 | 3,725 | -7% | 2,197 | 2,613 | -16% | ||||||||||||||||||||||||
| Arauco Quilicura | 31,260 | 9,700 | 222% | 30,954 | 10,594 | 192% | 2,046 | 692 | 196% | 1,421 | 517 | 175% | ||||||||||||||||||||||||
| Arauco Express (Stripcenters Chile) | 12,222 | 10,542 | 16% | 12,476 | 5,946 | 110% | 2,210 | 1,268 | 74% | 1,423 | 769 | 85% | ||||||||||||||||||||||||
| Buenaventura Premium Outlet Mall | 20,000 | 20,000 | 0% | 29,821 | 11,263 | 165% | 3,323 | 1,036 | 221% | 2,174 | 676 | 222% | ||||||||||||||||||||||||
| Total Chile | 374,682 | 344,242 | 9% | 769,606 | 691,350 | 11% | 76,194 | 69,606 | 9% | 65,877 | 60,442 | 9% | ||||||||||||||||||||||||
| Megaplaza Norte | 107,400 | 83,000 | 29% | 1,025,287 | 1,036,599 | -1% | 62,273 | 62,274 | 0% | 49,236 | 49,205 | 0% | ||||||||||||||||||||||||
| Mega Express Villa Chorillos | 7,000 | 7,000 | 0% | 56,772 | 48,451 | 17% | 3,988 | 3,444 | 16% | 2,830 | 2,451 | 15% | ||||||||||||||||||||||||
| Larcomar Fashion Center | 26,000 | 26,000 | 0% | 191,647 | 185,004 | 4% | 28,583 | 29,108 | -2% | 18,147 | 19,128 | -5% | ||||||||||||||||||||||||
| Parque Lambramani | 29,390 | 28,000 | 5% | 132,722 | 128,663 | 3% | 10,337 | 9,665 | 7% | 3,271 | 3,175 | 3% | ||||||||||||||||||||||||
| Mega Plaza Chimbote | 28,000 | 28,000 | 0% | 207,496 | 132,218 | 57% | 10,112 | 5,534 | 83% | 6,552 | 2,521 | 160% | ||||||||||||||||||||||||
| Mega Express Villa El Salvador | 9,000 | 9,000 | 0% | 51,982 | 28,396 | 83% | 4,507 | 2,487 | 81% | 3,174 | 1,125 | 182% | ||||||||||||||||||||||||
| Mega Express Chincha | 7,224 | 20,450 | 2,734 | 1,650 | ||||||||||||||||||||||||||||||||
| Mega Plaza Cañete | 16,397 | 49,769 | 1,268 | 548 | ||||||||||||||||||||||||||||||||
| Mega Plaza Barranca | 9,507 | 6,382 | 316 | - 51 | ||||||||||||||||||||||||||||||||
| Lima Outlet Center | 5,000 | 39,212 | 3,109 | 2,494 | ||||||||||||||||||||||||||||||||
| Total Peru | 244,918 | 181,000 | 35% | 1,781,719 | 1,559,332 | 14% | 127,226 | 112,512 | 13% | 87,851 | 77,605 | 13% | ||||||||||||||||||||||||
| Parque Arboleda | 34,000 | 34,000 | 0% | 156,018 | 141,939 | 10% | 18,013 | 16,965 | 6% | 15,279 | 14,257 | 7% | ||||||||||||||||||||||||
| Parque Caracoli | 39,500 | 71,891 | 11,011 | 7,030 | ||||||||||||||||||||||||||||||||
| Total Colombia | 73,500 | 34,000 | 116% | 227,909 | 141,939 | 61% | 29,025 | 16,965 | 71% | 22,309 | 14,257 | 56% | ||||||||||||||||||||||||
| Occupancy | EBITDA Margin | Monthly Sales per m2 | Monthly Revenues per m2 | |||||||||||||||||||||||||||||||||
| 2013 | 2012 | Chg. b.p. | 2013 | 2012 | Chg. b.p. | 2013 | 2012 | Chg. % | 2013 | 2012 | Chg. % | |||||||||||||||||||||||||
| Parque Arauco Kennedy | 97.2% | 97.4% | -20 | 91.7% | 90.8% | 83 | 266,959 | 287,254 | -7% | 27,720 | 27,727 | 0% | ||||||||||||||||||||||||
| Arauco Maipú | 97.3% | 97.4% | -10 | 93.0% | 86.0% | 704 | 176,941 | 146,889 | 20% | 13,128 | 13,040 | 1% | ||||||||||||||||||||||||
| Plaza El Roble | 91.9% | 97.9% | -600 | 78.4% | 83.7% | -536 | 219,504 | 208,092 | 5% | 14,811 | 14,377 | 3% | ||||||||||||||||||||||||
| Paseo Arauco Estación | 98.2% | 98.3% | -10 | 86.7% | 87.3% | -60 | 123,517 | 114,819 | 8% | 16,489 | 16,501 | 0% | ||||||||||||||||||||||||
| Arauco San Antonio | 94.0% | 98.2% | -420 | 63.5% | 70.2% | -665 | 95,241 | 90,549 | 5% | 10,430 | 11,014 | -5% | ||||||||||||||||||||||||
| Arauco Quilicura | 97.1% | 100.0% | -290 | 69.5% | 74.8% | -528 | 105,950 | 130,015 | -19% | 7,003 | 8,493 | -18% | ||||||||||||||||||||||||
| Arauco Express (Stripcenters Chile) | 98.3% | 100.0% | -170 | 64.4% | 60.7% | 372 | 88,478 | 55,873 | 58% | 15,674 | 11,913 | 32% | ||||||||||||||||||||||||
| Buenaventura Premium Outlet Mall | 98.0% | 100.0% | -200 | 65.4% | 65.3% | 17 | 133,641 | 69,522 | 92% | 14,892 | 6,395 | 133% | ||||||||||||||||||||||||
| Total Chile | 96.9% | 98.0% | -112 | 83.8% | 84.0% | -15 | 180,954 | 180,395 | 0% | 17,915 | 18,162 | -1% | ||||||||||||||||||||||||
| Megaplaza Norte | 90.0% | 99.9% | -985 | 79.1% | 79.0% | 5 | 1,015 | 1,045 | -3% | 62 | 63 | -2% | ||||||||||||||||||||||||
| Mega Express Villa Chorillos | 100.0% | 97.0% | 300 | 71.0% | 71.2% | -19 | 686 | 594 | 15% | 48 | 42 | 14% | ||||||||||||||||||||||||
| Larcomar Fashion Center | 94.0% | 87.1% | 690 | 63.5% | 65.7% | -223 | 668 | 659 | 1% | 100 | 104 | -4% | ||||||||||||||||||||||||
| Parque Lambramani | 92.0% | 92.4% | -40 | 31.6% | 32.8% | -120 | 446 | 415 | 8% | 35 | 31 | 11% | ||||||||||||||||||||||||
| Mega Plaza Chimbote | 100.0% | 88.0% | 1200 | 64.8% | 45.6% | 1924 | 650 | 442 | 47% | 32 | 19 | 71% | ||||||||||||||||||||||||
| Mega Express Villa El Salvador | 95.0% | 74.0% | 2100 | 70.4% | 45.2% | 2518 | 519 | 321 | 62% | 45 | 28 | 60% | ||||||||||||||||||||||||
| Mega Express Chincha | 89.0% | 60.4% | 339 | 45 | ||||||||||||||||||||||||||||||||
| Mega Plaza Cañete | 82.0% | 43.2% | 1,234 | 31 | ||||||||||||||||||||||||||||||||
| Mega Plaza Barranca | 74.0% | -16.2% | 302 | 15 | ||||||||||||||||||||||||||||||||
| Lima Outlet Center | 87.0% | 80.2% | 969 | 77 | ||||||||||||||||||||||||||||||||
| Total Peru | 91.0% | 93.6% | -261 | 62.9% | 62.8% | 11 | 789 | 760 | 4% | 56 | 55 | 3% | ||||||||||||||||||||||||
| Parque Arboleda | 93.0% | 85.1% | 792 | 84.8% | 84.0% | 78 | 404,653 | 386,677 | 5% | 46,720 | 46,217 | 1% | ||||||||||||||||||||||||
| Parque Caracoli | 86.0% | 63.8% | 246,617 | 37,773 | ||||||||||||||||||||||||||||||||
| Total Colombia | 89.2% | 85.1% | 416 | 73.5% | 84.0% | -1049 | 336,611 | 386,677 | -13% | 42,868 | 46,217 | -7% | ||||||||||||||||||||||||