Mallplaza Fuels South American Retail Expansion Following Strong First-Quarter Profit Growth
Santiago, Wednesday, 6 May 2026.
Fueled by nearly 96 million visits and a 20.5 percent profit surge, Mallplaza is rapidly advancing its $600 million expansion of physical retail centers across South America.
A Strong First Quarter Under New Leadership
On May 4 and May 5, 2026, South American shopping center operator Mallplaza (Santiago Stock Exchange: MALLPLAZA) [GPT] reported its financial results for the first quarter of 2026 [1][2]. In his first quarter at the helm, Chief Executive Officer Pablo Pulido oversaw significant financial growth [1]. The company posted an EBITDA of $140.5 million, representing a 5.2 percent increase compared to the previous year [1][2]. Net revenues climbed by 6 percent, rising from $156.045 million to $165.469 million (an increase of 6.039 percent) [3]. Simultaneously, net profits saw a substantial surge of 20.5 percent, totaling $91.6 million [1] [alert! ‘Source 3 reports Mallplaza’s Q1 2026 profits as $84.988 million; the discrepancy may stem from different accounting standards or currency conversion rates applied by the parent company versus the subsidiary’]. Furthermore, Funds From Operations (FFO) grew by 6.3 percent to $105.4 million [1].
Strategic Investments and Regional Expansion
Capitalizing on its strong cash flow, Mallplaza is actively executing an ambitious investment plan exceeding $600 million, which was initially announced in 2025 [1]. The core objective of this capital allocation is to increase the market share of the company’s premium Tier A retail assets [1]. According to Pulido, the company has already moved forward with the execution of more than 50 percent of the commitments outlined in this investment plan [1][3].
Diversification Through Residential Integration
Beyond traditional retail infrastructure, Mallplaza is diversifying its revenue streams by integrating residential developments into its urban centers. The company is advancing a regional strategy to develop 10,000 homes, which will ultimately add 500,000 square meters of useful space designated for lease, sale, or land sale [1]. Currently, 2,000 residential units are under execution through land sales [1]. Additionally, a multifamily residential project at Mallplaza Vespucio is underway, featuring 320 rental units distributed across 11,000 square meters of leasable area [1].
Financial Resilience Amidst Broader Group Success
Mallplaza’s individual success mirrors the broader financial recovery of its parent company, Grupo Falabella [GPT]. Between January and March 2026, Falabella accumulated its tenth consecutive quarter of profit growth, with net profits rising by 22.3 percent (calculated as 22.265 percent) from $192.007 million to $234.758 million [3]. Falabella’s overall revenues increased by nearly 7 percent to $2,766.026 million, supported heavily by strong retail sales growth of 20 percent in Peru and 17 percent in Colombia [3].