By Brazil Stock Guide – Iguatemi SA (B3: IGTI11) said profit more than doubled in the first quarter, as sales at its shopping centers rose and asset sales helped lift earnings, according to the company’s 1Q26 results report.
Adjusted net income reached 239.5 million reais, up 110% from a year earlier, while adjusted EBITDA rose 65.9% to 405.2 million reais. Adjusted funds from operations climbed 98.4% to 274.7 million reais, with an adjusted FFO margin of 74.5%.
Total sales at Iguatemi’s portfolio increased 12.8% from the same period last year to 5.7 billion reais. Same-store sales grew 5.2%, while same-area sales rose 7.8%, outpacing the average inflation rate for the period by 3.7 percentage points, the company said.
Gross revenue rose 11.7% to 414.8 million reais. Adjusted net revenue increased 11.8% to 368.9 million reais, supported by higher mall sales, rent growth and the addition of Shopping Pátio Paulista to the portfolio.
Rent revenue at 100% ownership rose 14.7% from a year earlier, while rent per square meter increased 9.1%. Same-area rent advanced 6.7%, above the contractual inflation adjustment applied to the portfolio, even as the IGP-M index was negative in the previous five months.
The company said occupancy ended the quarter at 97.3%, up 0.7 percentage point from a year earlier. Occupancy costs remained broadly stable at 11.9% of sales, while net delinquency fell to 0.7% from 1.4%.
Iguatemi also completed the sale of minority stakes in Iguatemi Alphaville, Iguatemi Ribeirão Preto, Iguatemi São José do Rio Preto and Praia de Belas to XP Malls FII (B3: XPML11) for 372 million reais. The transaction generated a capital gain of 143 million reais and was priced at an average cap rate of 7.8% on 2025 NOI.
In April, the company completed the acquisition of an additional 3% stake in Shopping Pátio Paulista for 75.6 million reais, raising its ownership in the asset to 14.45%. Iguatemi said the move reinforces its strategy of concentrating capital in higher-productivity assets.
Net debt declined 13.7% from the previous quarter to 1.91 billion reais. Leverage fell to 1.29 times net debt to adjusted EBITDA, compared with 1.76 times a year earlier. Excluding capital gains from minority stake sales in 1Q26 and 2Q25, leverage would have been 1.60 times.
The retail division, which includes Iguatemi 365 and iRetail, posted a 59.2% increase in gross revenue to 56.7 million reais. Retail EBITDA reached 4.8 million reais, up 808.6% from a year earlier, driven by stronger same-store sales and the performance of brands including Birkenstock and Polo Ralph Lauren (NYSE: RL).
The company said H&M (STO: HM B) opened stores in Rio de Janeiro and Sorocaba after the quarter, at Shopping RIOSUL and Iguatemi Esplanada. It also said Bvlgari, owned by LVMH (EPA: MC), chose JK Iguatemi as its only permanent high-jewelry destination in Latin America.
Iguatemi’s units ended March at 27.78 reais. The company said 14 analysts had active coverage of the stock at the end of the quarter, and average daily liquidity in 1Q26 reached 65.8 million reais.