Lauren Brown: Good morning, and thank you for taking the time to connect to the Parque Arauco Q3 2026 Earnings Call. I am Lauren Brown, Head of Investor Relations, and I am joined by Eduardo Pérez Marchant, CEO of Parque Arauco, and Francisco Moyano, CFO. I would like to mention a few things before we get started. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. Please note that this call is being recorded, and the recording will be used for internal purposes. To start off today's conversation, I am going to pass the call over to our CFO, Francisco Moyano.
Francisco Moyano: Hello, everyone. Thank you, Lauren. In the screen, we are presenting our highlights for the quarter. From those, I would like to also highlight the one that we think is especially important is that our EBITDA is growing in the last 12 months. It doubled the amount that we had in pre-pandemic levels. It reached $335 million. With that, we are confirming our strategy of growth that we are implementing in the company by doubling the size of the company from 2019. Parque Arauco closed this Q3 2026 with outstanding operational and financial performance. We are affirming the resilience of our core business across all three markets where we operate and demonstrate solid execution in our growth pillar. First, I would like to highlight our financial results of the quarter.
Francisco Moyano: Regarding revenues, we closed the period reaching CLP 113 billion, an 18.6% increase compared to the Q3 of 2025. At the same time, the EBITDA reached CLP 81 billion, achieving a 17.3% growth, which, excluding exchange rate effects, is growing a solid 11.6% in same-asset view, a relevant growth for the entire platform. One key element of the quarter is that our adjusted EBITDA margin reached 77.5%, expanding 140 basis points compared to Q3 2025, and reaching historic maximum levels, reflecting the continuous impact that our operational efficiency programs and the economies of scale generated in the process of adding new assets to our portfolio are having on the company results. These results were driven in the first place by revenue expansion in local currencies, with relevant growth in all three countries.
Francisco Moyano: The operating strength then translated into a 20.2% increase in FFO, reaching CLP 62 billion, driven by higher EBITDA and stronger financial income. Finally, the net income attributable to controlling interest reached CLP 35 billion, increasing 30.3% in the quarter, supported by sound operational execution. Regarding our growth pillar, I am pleased to highlight that during the quarter, we completed the acquisition of Mall Paseo Quilín in Santiago, which we are consolidating in this Q4. We acquired the asset on 30 September, and we started the consolidation on 1 October. This asset adds 47,000 square meters of GLA, built on a 100,000 square meter plot with high expansion potential. In Peru, we inaugurated the new gastronomic district at MegaPlaza Independencia, and in Chile, we are close to the opening process of Arauco Chicureo, with anchor stores projected to be open during this Q4.
Francisco Moyano: Regarding our flagship asset, Parque Arauco Kennedy, we continue the Cerro Colorado phase, and following the successful opening of the new gastronomic and retail area, this year, we are now completing construction of the office tower, which has 23,400 square meters of high-standard office space, with opening at the beginning of 2027. In addition, we announced the expansion of Mall Curicó, owned by Grupo Marina, in which we hold a 50% interest. This $51 million investment will add approximately 11,000 square meters of GLA, adding new commercial offerings to the assets. We have a $953 million investment pipeline, with $436 million remaining to invest in current projects. Thanks to our capital increase this year, our net debt-to-EBITDA ratio closed in this quarter at 4.5x, providing significant financial flexibility to continue our expansion.
Francisco Moyano: Beyond financial results, Fitch Ratings upgraded our local rating to AA+ with a stable outlook, reflecting our financial strength. In addition, we were recognized by Brinca as the leading real estate company in corporate sustainability, and we completed the third edition of our startup challenge to integrate high-impact operational efficiencies across our assets. With that, I would like to pass to the following pages of our earning reports. Moving to the tenant sales, in the quarter, we are increasing tenant sales by 7.6%. You can see by country that Chile is having a more challenging scenario, decreasing 1.4%, and Peru and Colombia showing very positive results in sales. In Chilean peso, Peru is growing 10.3%, and in local currency, 8.7%. In Colombia, in Chilean peso is growing 30.3%, and in local currency, 6.8%.
Francisco Moyano: The change rate effect this quarter in Colombia is important at around 20%, and that is why the increase in local currency is 6.8% in comparison with the 30% in Chilean pesos. You can see the same area sales, the chart below in this slide. You can see that the same area sales in Chile is decreasing 3%. As I said, it is a more challenging scenario for the whole portfolio.
Francisco Moyano: We are seeing the effect from Argentines is decreasing this quarter. It was more important in the previous quarter, but it is still in our portfolio, and it is impacting more importantly in outlets, with less impact in the rest of the portfolio. For Peru and Colombia, you can see that the same area sales is increasing 9.3%, and in Colombia, 5.3%, with some impact in Arboleda, which had an effect from the earthquake that happened in that city, in Pereira.
Francisco Moyano: But the rest of the portfolio is showing very positive results in tenant sales. The diversification of the portfolio, of the whole portfolio, then is important to highlight in the consolidated figures. The tenant sales are increasing then 7.6%, thanks of our participation in this period in Peru and Colombia. Now passing to the revenues in the quarter are growing 18.6%. In local currencies, Chile is growing 15%, Peru 7.9%, and Colombia 11.8%. The same area rent is quite positive in all three countries. Chile growing 8%, Peru 9.6%, with an evolution from the last year with a very positive scenario. We are advancing in improvement in some of our assets.
Francisco Moyano: Ica is one of the one that I can highlight, Larcomar as well, and MegaPlaza Independencia, as I said before, is opening now the gastronomic sector and advancing in the renovation project that we are developing in that asset. Colombia also growing 10.7%, a quite sound scenario for the portfolio. In the revenue breakdown, you can see that parking revenue and other revenues are now participating in 12% of our total revenue. We are implementing several projects and initiatives around these other revenues that are now generating growth in this line. Also to mention that the retail occupancy closed at 96%. We are seeing important and high levels of occupancy in all of our portfolio. One second. We can pass now to the EBITDA page. Yes, in this page then, first I would like. The EBITDA is growing 17.3%.
Francisco Moyano: The positive scenario that I explained in revenues is translated in the EBITDA with growth in Chile, Peru, Colombia at important levels. Revenues are growing 18%, and cost of sales and administrative expenses are growing at around 20%. However, here we have the effect of the simplified rent, which increased the change in revenues and in cost of sales and administrative expense. I would like to highlight that this effect is more important in cost than in revenues. The revenue that is growing 18% without the effect of this simplified rent is growing at around 15%. But since the amount of this effect is a fixed amount in pesos, the effect is much more important in the cost and administrative expenses, which without the simplified rent would grow at around 8%. That is why the adjusted EBITDA margin is reaching one of the highest of Parque Arauco history at 77.5%.
Francisco Moyano: This is the result, as I said, of several initiatives looking for operational efficiencies, and more importantly, the economies of scale that are happening in the company when we add new assets to our portfolio, with new acquisition that then adds little cost or administrative expenses to our financial statements. Passing to the non-operational results, just to mention that we have a higher financial income coming basically from having higher levels of cash in the company, coming from the follow-on that we did at the beginning of the year. The financial expenses is growing 11%, coming from the new acquisitions that happened during this year, and some increasing in financial costs in Colombia. Finally, to mention, the FFO is growing 20%. It is coming from this positive scenario for the EBITDA of the company and some financial income and expenses.
Francisco Moyano: This growth of 20%, then in the adjusted FFO is 26.4%. Here also, we add this chart with the evolution of the EBITDA of the company for the last 10 years. I mentioned that we doubled the size of the company or the EBITDA from year 2019. But if you go back to 2015, the factor is a three-time growth for the EBITDA. As I said, I think this is quite important to reflect how the growth strategy of the company is having effect then in the financial statements of Parque Arauco. With that, I am passing the call to Lauren to continue with the presentation.
Lauren Brown: Thank you, Francisco. Let us now turn to the operational performance of our retail assets across Chile, Peru, and Colombia during the Q3 2026. Let us begin in Chile, highlighting a few key assets across the portfolio. First, Parque Arauco Kennedy. In our main asset in Chile, the Kennedy West building continues to show solid operations despite a 0.6% decrease in tenant sales. The asset achieved revenue growth of 26% and NOI increase of 11%, driven by minimum rent growth and an over 20% increase in parking, alongside new store openings such as Cannon Home, La Birra Bar, SuperZoo, and Abercrombie & Fitch. Meanwhile, Kennedy East delivered 17% NOI growth, bolstered by an over 50% increase in parking revenues and cost efficiencies in janitorial and security services.
Lauren Brown: At Arauco Maipú, it continued to sustain a solid performance with 0.8% growth in tenant sales, accompanied by a 9.8% increase in revenues and 8.6% increase in NOI, reflecting active commercial management and healthy traffic. At Quilicura, this asset delivered strong revenue growth of 7%, primarily propelled by increase in minimum rent charges and higher parking revenue streams. At Arauco Chillán, while revenues grew, tenant sales experienced a 6.7% decline. This was concentrated in anchor and department stores due to ongoing road work directly in front of a primary mall entrance and alongside regional economic headwinds. At Arauco San Antonio, the reopening of the casino terrace and hotel operations led to an increase in revenues by 33.7% and NOI by 27.5%. Performance benefited from a favorable comparison base as minimum rent, variable rent, parking, and common expense collections normalized.
Lauren Brown: Moving on to Peru, our operations maintained strong momentum across key assets. First, MegaPlaza Independencia, our flagship Peruvian asset, posted 4.8% growth in sales, 11.8% in revenues, and 16.6% in NOI, driven by increases in variable rent and operating cost savings. We inaugurated the new Plaza Gastronómica, adding 4,500 square meters of new leaseable area. The new dining hub features 24 store units and three kiosks, over half of which are open, including operators like Al Plato, which is reporting sales over 20% higher than its previous location on the first floor. MegaPlaza Ica delivered sales growth of 28.9%, revenue of 24.6%, and NOI of 26%, boosted by the opening of the new 3,500 square meter Boulevard District, of which over half the stores are open.
Lauren Brown: The new open-air gathering hub features high-drawing retail tech and dining tenants, including Skechers, Samsung, KFC, Popeyes, and the newly opened Chili's restaurant. Feedback from the Ica community has been extremely positive. Visitors highlight that the space feels less like a simple commercial corridor and more like a modern, open-air urban gathering point. They particularly appreciate the landscaping design, which incorporates trees and vegetation adapted to Ica's desert climate, as well as the seating areas and free family entertainment featuring playgrounds. By diversifying the offering with international brands previously absent from the region, the boulevard is capturing spend not only from Ica, but also from neighboring areas. At Minka has marked its first full year in our portfolio, consolidating its status as our third most important asset in Peru, achieving 7.6% sales growth, 4.6% revenue growth, and an outstanding 17.7% NOI increase.
Lauren Brown: Operating efficiencies, renegotiated vendor contracts, and tech upgrades contributed to these results as Minka expands our footprint in traditional retail markets. Finally, at Parque La Molina, where revenues declined 14% due to ongoing tenant discounts, we are actively rebalancing the tenant mix by introducing high-frequency daily needs operators like Dollarcity and a new small-format supermarket. Turning to Colombia, our assets displayed resilience and growth. At Parque Alegra, the asset continues its maturation in Barranquilla, achieving 10.4% sales growth, 18.2% revenue growth, and an NOI increase of over 50%. This expansion was driven by an increase in variable rent, property tax savings, and bad debt provision reversals. At Parque Arboleda, despite experiencing a brief three-day closure in August following an earthquake in Pereira, Arboleda demonstrated incredible resilience. While quarterly sales dipped slightly by 1.3%, sales quickly rebounded in September.
Lauren Brown: The quarterly revenue growth of 16% and NOI growth of 16% was supported by insurance coverage for tenant discounts. At Parque Alegra generated sales growth of 6.3%. Results reflect an elevated comparison base and industry-wide tenant adjustments following the nationwide exit of brands like Lili Pink and Yoi. Moving over to our development pipeline, our investment pipeline totals $953 million across Chile, Peru, and Colombia. As Francisco Moyano mentioned, backed by our solid portfolio cash generation and our capital execution, our leverage ratio closed at 4.5x net financial debt to EBITDA, giving us ample room, ample balance sheet capacity to continue executing our expansion strategy. We expect to add over 200,000 square meters of leasable area, representing a 17.8% GLA growth, bringing our total square meters from 1.34 million square meters to 1.58 million square meters.
Lauren Brown: By the close of 2026, key completions include the Cerro Colorado gastronomic area, Parque Arauco Kennedy, Arauco Chicureo, the MegaPlaza Ica Boulevard, and two LiveSpace multifamily projects in Colombia, amongst others. Moving over to new shopping centers, we will soon be opening two new shopping centers in Chile. Arauco Chicureo is a $97 million investment, adding 40,000 square meters of leasable area in Colina, featuring anchor tenants Homecenter Sodimac and a Líder supermarket, scheduled to open in Q4 2026, and the remaining stores in Q1 2027. Additionally, Arauco Premium Outlet Quilicura is a $25 million investment adding 11,000 square meters in southern Santiago, opening in Q4 2027, and will be our fifth outlet in Chile and ninth in Latin America.
Lauren Brown: Most recently, we acquired 100% of Mall Paseo Quilín following the transaction announcement in May 2026. Full control and operational consolidation took effect as of 1 October. The asset includes approximately 47,000 square meters of leasable area on a 100,000 square meter plot of land, situated at the strategic intersection of Américo Vespucio Sur and Avenida Quilín. The asset features direct integration with Quilín Station, Metro Line 4, and will benefit further from the AVO 2 highway opening in 2029. Its 15-minute area of influence covers over 500,000 people across more than 185,000 households, with roughly 75% belonging to the ABC1 and C2 socioeconomic segments. Anchored by Paris, Easy, Santa Isabel, and Cineplanet, the property features a 5,700 square meter medical center and 970 parking spaces.
Lauren Brown: The asset offers medium to long-term development optionality for approximately 20,000 square meters of retail expansion and 45,000 square meters of residential development, totaling around 65,000 square meters of future potential expansion. Quickly moving to marketing highlights, under our overarching banner of "Mucho más que comprar," which means "Much more than shopping," we highlight key marketing initiatives that drove foot traffic this quarter. In Chile, Arauco Maipú hosted the fifth edition of the Corrida Familiar de Maipú, a race that attracted over 10,000 runners and selling out 8,500 paid registrations. This drove over a 35% increase in traffic. In Colombia, the Sale Fest campaign, which brought together 265 brands across five shopping centers, drew in nearly 4.3 million visits, up 6% compared to 2025.
Lauren Brown: In Pereira, Parque Arboleda rolled out a "Por Pereira Todo" following the August earthquake, generating COP 103 million in sales for local entrepreneurs and over 1 million organic digital views. Finally, turning to our major sustainability milestones. At the 2026 CLICC Awards in Quito, Parque Arauco emerged as the most awarded company at the Latin American Shopping Center Congress, receiving 5 accolades. Highlights included the Gold ESG Award for the region's largest rooftop solar panel at Parque Alegra in Barranquilla, and the Bronze ESG Award for our regional social program, "Emprender es Crecer Más." In the Merco Empresas Perú 2026 rankings, we entered the top 100 most reputable companies in Peru, jumping 31 positions to 79th place, ranking as one of the 10 fastest-growing corporate reputations in the country, and securing second place in the shopping center category.
Lauren Brown: We are now moving over to the question-and-answer part of the call. If you are joining the call using the link, you can ask a question by clicking the button, "Ask a voice question," or by submitting a written question. If you are submitting a written question, please submit it in English, as it will be read aloud. If you are joining by phone, you can ask a question by pressing star 2. To start off today's discussion, I am going to pass the call over to the CEO of Parque Arauco, Eduardo Pérez Marchant. I see that we already have some questions waiting, so I am going to start here with Alejandra from Morgan Stanley. Alejandra, you are now unmuted.
Alejandra Obregón: Hi. Good morning, Eduardo, Francisco, Lauren. Thank you for the call. The numbers are impressive again, so congratulations. My question is on the projects to come, so more in particular on the office component at Kennedy. I just wanted to hear where you stand on construction, but more importantly, on pre-leasing today. Based on your conversations with tenants, how are rents and the overall demand tracking versus what you originally expected for the project? Maybe a similar question on Chicureo. Now that you have a closer look at the mall, how is performance comparing versus what you originally underwrote? Thank you.
Eduardo Pérez Marchant: Thank you, Alejandra, for that question. Let me highlight that we have been working a lot in projects that will be incorporated into the portfolio very soon. The first of all is the asset we recently acquired, Quilín. Since 1 October, we are operating and financially consolidating that asset. It is a very important asset, and we believe it has a lot of optionality. So, we are starting the market studies related to the future expansion and improvement of that asset. We believe it is a very good location with a lot of growth optionality because it is located in a very large piece of land of more than 10 acres. That is the first relevant growth coming, and as you mentioned, since 1 October.
Eduardo Pérez Marchant: The second is Chicureo. We expect to open both anchor stores, both the large home improvement store and the very large supermarket, the home improvement from Homecenter from Grupo Falabella, and the Walmart supermarket, during this last quarter of the year. Regarding the rest of the asset, we expect to open that during Q2 of next year. We recently announced an acquisition of a 1-acre piece of land adjacent to the asset, which allows us to further expand the asset in another approximately 15,000 square meters of GLA. So, for the moment, this is an asset of 40,000 square meters of GLA, and it could be, this is an optionality, an asset of 55,000 square meters of GLA after the piece of land we acquired. The project is in the final phase of construction, and commercialized in over 70%, reaching almost 80% of the GLA.
Eduardo Pérez Marchant: We see a lot of interest from retailers to be in the project, and this is why we are already at these very high figures, even though we are approximately 6 months away from opening the asset, which is very unusual, I would say. This is why we are thinking about the next steps. Finally, regarding the office building, we are in the final process of construction. We expect to open the first floor of the office building, which is the last floor of the retail part, which will be a high-end restaurant district with three or four high-end restaurants. We expect to receive this. This is the first part of the construction we are going to incorporate into the portfolio in the next few months.
Eduardo Pérez Marchant: Regarding the office building, we started commercialization approximately 1 month ago with an important commercial meeting with all the brokers in the country. We believe this is a great office building with very good connectivity with private transportation, because of the surroundings of Avenida Kennedy and Apoquindo, and very soon with public transportation with the future opening of the subway station in 2028. We are in the final process of getting the permits for that building, so we expect to inaugurate officially the building more or less mid next year, June of next year, with the best information I have in hand now. I believe it is a very good timing for commercializing the office, because the vacancy of Nueva Las Condes, which is this office district nearby the asset, is lower than 5% currently.
Alejandra Obregón: Excellent. That was very clear. Muchas gracias, Eduardo.
Lauren Brown: Thank you, Alejandra. Now we have a question from Igor from Goldman Sachs. Igor, you are now unmuted.
[Analyst] (Goldman Sachs): Good morning, team. Thanks for taking my question. I have two points here. The first one is on Chile occupancy costs. We saw this going to 12.6% from 11.5%, with tenant sales decreasing. I just want to understand this. How much room do you see for future rent growth, and what will be the impact on the renewal spreads? I do not know if you have an occupancy cost target that you see this impacting with tenant affordability. Any color here would be great. The second point would be on Chile sales. We saw same area sales -2%, and I just want to know if you have any color on what the October trends are looking like here. That is it. Thank you.
Eduardo Pérez Marchant: Thank you for the question, Igor. Good morning. Regarding occupancy cost, let me mention that when you analyze category per category and you compare these figures with the figures we had before the pandemic, when you compare category per category, they are not very different to what we had before pandemic. The reason why it increases compared to Q3 2025 are mainly two reasons. The first is that we have been working in reducing the space of anchor stores and increasing the space of minor stores, and there is a change of mix there with the occupancy cost of minor stores being, of course, higher than the anchor stores.
Eduardo Pérez Marchant: Secondly, when you analyze by category the decrease of sales in Chile, you will see that a relevant part of that decrease of sales comes from anchor stores, and those anchor stores pay a fixed rent, most of them. There are very, very few contracts of anchors that pay variable. Basically, we maintain the same rent adjusted by inflation, but the sales are decreasing. Because these anchor store contracts are not active in variable, we do not suffer the decrease in variable rent. This is why you see this increase in the occupancy cost. Again, the big picture here I would like to highlight is that when you analyze category by category and you analyze a long period of time, you do not see relevant differences compared to the levels we had before the pandemic.
Eduardo Pérez Marchant: Well, first of all, let me highlight that more than half of the GLA is outside Chile with very positive sales, especially in Peru, with the same area sales increase of 9.3%. Regarding Chile, we continue to see an adjustment of sales that is not only because of less tourism, but is also affected by local consumption. We expected a better performance this Q3 in Chile in sales than what we had. We see that expectations are improving, both in private companies' expectations that will generate investments that should improve local employment. With this, we expect gradually sales to improve in Chile. When I talk also to retailers, they are more optimistic about next year than this year. This year is an adjustment year.
Eduardo Pérez Marchant: Well, again, first of all, because of the Argentinian tourism, but now this last quarter mainly because of local consumption.
[Analyst] (Goldman Sachs): Very clear. Thank you.
Lauren Brown: Thank you, Igor. Our last question is from Felipe from Santander. Felipe, you are now unmuted.
Felipe Ballevona: Hi, everyone. Can you hear me well?
Lauren Brown: Yes.
Eduardo Pérez Marchant: Yes.
Felipe Ballevona: Great. I mean, like my competition said before, your results were outstanding, considering this was the first clean sort of thing, quarter in a while, as you did not consolidate any assets in year-over-year terms. And congrats, guys, for those results. Very well deserved. You sort of answered this in the previous questions, but if you could give us more color, that would be very helpful, because we see tenant sales being under pressure these past few quarters. I guess my question is, for how long do you believe you could maintain this performance under the current context? Also, how you see this context evolving looking forward? I have also a second question about variable revenue, which you also kind of answered in the previous answers.
Felipe Ballevona: But if you could give us more color in this, because the share of over total revenue stayed flat at 11%. Does this mean that the tenants that are underperforming maybe are the big boxes, while the small boxes are kind of like flat-ish year over year? Because even if it is mostly the big boxes, we should still expect this percentage to go down, right?
Felipe Ballevona: Or maybe the potentials for variable revenue, in order to be relevant, they are just too high. Also, maybe we should start looking at tenant sales just as a proxy to gauge how much room there is for step-ups and renegotiate contracts. Those are my two questions.
Eduardo Pérez Marchant: Mm-hmm. Okay. Thank you, Felipe, for the question. Regarding the first one, let me analyze the last 5 years of the company, and I will try to give a rough guideline about the next years. When you analyze the growth of Parque Arauco in the last 5 years, the growth is approximately 16% every year in EBITDA. When you split that, an important part of the growth comes from the growth of the existing GLA, not the EBITDA coming from new investments. That growth is approximately 10%, and the remaining 7 points is EBITDA coming from investments. That 10% is more or less inflation plus 5%, considering that in the last years, on average, the inflation in Chile, Peru, and Colombia has been approximately 5%. That inflation plus 5%, we believe, is very solid. Going forward, I would expect a lower figure.
Eduardo Pérez Marchant: As a guideline for the next few years, I would expect an inflation plus 3%, not an inflation plus 5%. That includes, first of all, an effect of tenant sales that I am assuming will grow at inflation plus 1% to 2% on average in the portfolio. That will lead to a rental revenue growing at this inflation plus 1% to 2% also. Plus non-rental revenues that are increasing more than rental revenues, such as parking, such as retail media, that should contribute other half a point to 1 point to that growth, plus efficiencies that we continue to see in the years to come that will contribute also half a point to 1 percentage point. I am giving you this guideline of inflation plus 3%, compared to the inflation plus 4% we had in the 5 previous years.
Eduardo Pérez Marchant: Regarding the second question of variable, yes, I understand it is a little bit counterintuitive. Let me split that variable by country. Measured in local currency, the variable revenue grew 42% in Peru and grew 28% in Colombia. It dropped, it fell 7% in Chile in inflation-adjusted currency. Let me highlight that the 42% Peru sounds very high, right? The reason is that the base is very low because in MegaPlaza Independencia, which is by far the largest asset we have in Peru, we have a very low comparison base because we were working in the MegaPlaza expansion. We were changing the food court from the first floor to the second floor, affecting several stores, relevant stores that impacted this base. Also, remember that Larcomar had a closing of approximately 1 month the year before.
Eduardo Pérez Marchant: The comparison base was very low, and Larcomar is very high in variable. This is why you see a very positive variable. It is because we had a very, very strong performance in Peru. Finally, last question?
Lauren Brown: No, tenemos una más.
Eduardo Pérez Marchant: No, but you had a third question, I believe.
Francisco Moyano: Yeah, about the context and then variable rent. I think that you answered those.
Felipe Ballevona: Yeah, it was related to variable rent. No, but your color was very helpful, very good answers. So, thank you so much, Eduardo, and congrats again, everyone, for the numbers.
Eduardo Pérez Marchant: Thank you, Felipe. Thank you very much.
Lauren Brown: Thank you, Felipe. Our last question is from Jonathan from JP Morgan. Jonathan, you are now unmuted.
[Analyst] (JPMorgan): Yeah, thank you, Lauren. Can you hear me?
Lauren Brown: Yes, we can.
[Analyst] (JPMorgan): Perfect. Hi, Eduardo, everyone. So, 2 quick questions from my side. First is if you could walk us through what is the ramp-up of the parking revenues line that you see in the next 2 to 3 years. I would say that peers have been somewhat more aggressive around ramping up this line. The second question, another tailwind for results could be the catch-up in the occupancy rate in Colombia, right? If you could share some thoughts on how quickly it could revert back to the 96% level that you have been posting in Chile and Peru. So, these 2 questions. Thank you.
Eduardo Pérez Marchant: Regarding parking, we see an opportunity for the next years because, first of all, when you compare the figures top-down, we have 5% of the revenues coming from parking, and several other companies have 2 digits of revenues coming from parking. In Brazil, for example, that figure can be even 15%. When you do the bottom-up analysis, you see that, first of all, we charge parking in only
Francisco Moyano: Careful. Close here.
Eduardo Pérez Marchant: of the assets. We still have one-third of the assets not charging. Some of them because they are not mature enough, some others because of very specific reasons that we are working. I would expect that figure to go up gradually. Second, we have several initiatives regarding monthly agreements with people that work in the surrounding areas or people that live in the surrounding areas that usually occupy parking in low-demand times of the property. It is very countercyclical, and we are working a lot in that, and we believe there is an important opportunity. The first example, an obvious example, is Parque Arauco Kennedy, with a lot of offices in the surroundings and with very high rates of rental monthly. We have a lot of parking space, so that can be a lever too. Also, we are working in VIP parking initiatives.
Eduardo Pérez Marchant: In some assets, not all, I would say in few assets, we have very good parkings located in very good locations. In these few assets, we did all the investments we needed in order to provide a better service and to charge a little more. We have an express or VIP parking in Kennedy and also in Parque La Colina in Colombia. Finally, we are reconverting some parking space in some assets where we have idle capacity and in places where we see commercial interest. This is mainly close to the escalators, so where people access the shopping center. We see that in new shopping centers, for example, in Asia, the surroundings of the escalators that takes you to the shopping center, typically in the new designs, have retail in the surroundings. We are incorporating retails in some parking spaces.
Eduardo Pérez Marchant: Retail such as car services, such as pet services, such as, for example, low-price stores or Dollarcity stores. There are several niches that we can incorporate, of course, at a lower rate than the rest of the floor, but still very interesting and with very attractive return rates. With this, I would expect that 5% to gradually go up to 7%, 8% levels in the medium term. That will contribute to that growth of EBITDA, of inflation, of this inflation plus 3 that I mentioned before.
[Analyst] (JPMorgan): No, thank you. Very clear.
Eduardo Pérez Marchant: Regarding the occupancy cost or occupancy level? No, it's-
[Analyst] (JPMorgan): Rate in Colombia.
Eduardo Pérez Marchant: I would say same answer than before. We do not see a relevant change. Actually, in Colombia, in the specific case of Colombia, when you compare the figures category per category, you will see occupancy costs decreasing compared to pre-pandemic levels. Not flat, decreasing. In the case of Colombia, the figures are a little bit higher because the percentage of anchor stores is very low. Typically, in our properties, we have a Falabella department store, and in some of the properties, we have a very small supermarket. But the relevance of anchors is lower. We do not have a home improvement in Colombia, and typically, we have 1 department store, not 2. And we have a few and small supermarkets, so the percentage of anchors is very low.
Francisco Moyano: I do not know if you mean the occupancy cost or the occupancy rate in Colombia. Sorry.
[Analyst] (JPMorgan): Yeah, it was the rate, actually.
Francisco Moyano: Okay. Yes. Because regarding the occupancy rate, in Colombia, in our portfolio, we have the case of Parque Alegra and Arauco Outlet Sopó, which are malls that are not at the maximum rate. You can see in the breakdown, in the mall-by-mall page, in page 21, you can see that most of the assets are in high levels, above 90%. But Alegra is following this road of increasing the occupancy rate. It is doing quite well. Alegra is doing well in revenues and in sales, but it has taken some time to get to the maximum point of occupancy. But we think that it is in a good scenario and it is following a good trajectory. The same happened for Outlet Sopó. Arauco Outlet Sopó is our first outlet in the country. It has been increasing its occupancy quarter by quarter, always growing, but it has taken some time.
Francisco Moyano: At the end, I think it is a sound portfolio and it is doing very well in most of the assets, the most important ones, but it has these two assets that has occupancy below 90%.
[Analyst] (JPMorgan): Oh, very clear. Thank you, and congrats on the results.
Francisco Moyano: Great. Thank you.
Lauren Brown: Thank you, Jonathan. Thank you, everyone. Thank you, Eduardo, and everyone else for joining today and for asking your questions. If you have any additional questions or would like to set up a meeting, please do not hesitate to reach out. Thank you again for attending the Q3 2026 conference call. We will see you early in 2027 for our Q4 and full-year results. Have a great day and a good weekend.
