Iguatemi Signals Higher Dividends and Buybacks

Iguatemi board chairman Pedro Jereissati indicated that the company expects to raise shareholder distributions through dividends and share buybacks in the near future. On 8 September, BTG Pactual published a report following a meeting with Jereissati and investor relations officers Marcos Souza and Victor Barbosa. Management expects to expand shareholder returns as its capital expenditure cycle concludes, despite notable expansion spending planned for 2026 and 2027.

BTG Pactual reiterated its buy rating on the stock with a price target of R$ 25, citing a projected real internal rate of return of 12%. The bank projects Iguatemi's net dividend yield will rise from 2.6% in 2026 to 6.7% in 2027. On Tuesday morning, 8 September, the shares traded at R$ 26.96, gaining 2% intraday. The stock was up 6.5% year to date and 15% over the past 12 months, having traded slightly above R$ 26 ahead of the note.

Management intends to keep leverage controlled between 1.5 and 2 times net debt to Ebitda. According to BTG projections, Iguatemi's net debt will fall from R$ 2.035 billion at the end of 2024 to R$ 1.925 billion in 2026 and reach R$ 1.929 billion in 2027. The company continues to evaluate asset sales for non-core holdings and selective purchases to raise ownership stakes in existing shopping centres. Management noted that demand from international brands remains strong despite high interest rates and retail consumer debt, and views Brazil's tax reform as net positive for the sector.

BTG expects Iguatemi's revenue to rise from R$ 1.458 billion in 2025 to R$ 1.553 billion in 2026 and R$ 1.632 billion in 2027. Ebitda is projected to increase from R$ 1.101 billion in 2025 to R$ 1.175 billion in 2026. Net income, which stood at R$ 470 million in 2025, is forecast at R$ 455 million in 2026 before recovering to R$ 503 million in 2027. The enterprise value to Ebitda multiple is seen at 8.4 times for 2026 and 8.0 times for 2027.