By Brazil Stock Guide – During its third-quarter earnings call, Iguatemi S.A. (B3: IGTI11) reaffirmed that mergers and acquisitions remain a consistent part of its corporate strategy. The company’s president, Ciro Neto, told analysts that asset purchases and divestments are evaluated continuously, always with close attention to leverage and cash generation.
He emphasized that the company aims to keep its net-debt-to-equity ratio below 2×, a target reaffirmed as Iguatemi closed the quarter with R$ 2.1 billion in net debt and leverage of 1.64×. “M&A is a recurring item on our agenda,” Neto said. “The last rounds of M&A were carefully executed and are already showing results.”
Portfolio rotation and quarterly performance
The company’s recent acquisitions include stakes in RioSul Shopping, Pátio Higienópolis and Pátio Paulista, while divestments were made in less strategic malls such as Alphaville, São Carlos, Market Place and Galleria. This rotation has helped boost sales per square metre across Iguatemi’s network.
Iguatemi reported a 22.5% year-on-year increase in total tenant sales in the third quarter, reaching roughly R$ 6 billion. Same-store sales rose 5.8%, while same-store rent advanced 7.1%, around 2.8 percentage points above inflation (IGP-M). The occupancy rate stood at 96.1% at the end of September.
The company’s adjusted EBITDA totalled R$ 302.4 million, up 20.6% year-on-year, with an EBITDA margin of 79.4% — a result reflecting gains from premium-mall exposure and tighter expense management.
Debt management and growth outlook
Ciro Neto reiterated that maintaining a healthy balance sheet is central to the firm’s growth plan. “We will keep leverage under 2× while continuing to rotate assets and strengthen the quality of our portfolio,” he said.
Guido Oliveira, vice-president of Finance and Investor Relations, highlighted leasing momentum and occupancy: “We’re seeing strong demand from retailers, with several negotiations underway for 2025 and 2026. Occupancy should close this year above 97% — compared with 96.1% in September.”
Operational momentum and retailer demand
Oliveira noted that sales in comparable areas grew 10% in October, an improvement over the 9% recorded in the previous quarter. “October was very strong. We’re optimistic for November and December. The fourth quarter should be markedly better,” he said.
Sales per square metre rose 11.7% in the third quarter, driven by the integration of the newly acquired prime assets — RioSul, Paulista and Higienópolis.
Iguatemi also announced that H&M will open four additional stores in 2026, expanding in Porto Alegre (Iguatemi and Praia de Belas), Rio de Janeiro (RioSul) and Sorocaba (Esplanada). Neto described the expansion as a milestone: “Iguatemi has become the gateway in Brazil for major international brands.”