Parque Arauco Reports 2009 Full Year and Fourth Quarter Results

SANTIAGO, Chile--(BUSINESS WIRE)--

Parque Arauco S.A. (Santiago Stock Exchange: Parauco; Bloomberg: PARAUCO:CI), one of Latin America’s leading shopping center developers and operators, based on gross leasable area (GLA), reported financial results for the full year and fourth quarter ended December 31, 2009. The following financial and operating information, unless otherwise indicated, was prepared and presented in accordance with Chilean GAAP. Additionally, the Company utilizes the equity method of accounting, and its financial statements and operating information consolidate the numbers for Parque Arauco and its majority owned subsidiaries, and refer to Parauco’s stake (or participation) in its joint ventures and developments. For a more detailed review of the results filed with the SVS (Chilean Securities and Exchange Commission), please visit the investor section of Parque Arauco’s website www.parauco.com/eng/.

“Parque Arauco posted strong results for 2009. The Company was able to substantially expand its operations and grow revenues while reducing operating costs despite a challenging economic environment that resulted in lower tenant sales totals at several properties. Our performance in 2009 was attributable to a resilient business model that relies on excellent brand recognition, a prudent mixture of fixed and variable income lease structures, and diversified presence in high growth economies of the Andean region. This approach, along with greater operational efficiency, allowed the Company to register double-digit increases in revenues and operating income. We are very fortunate to be able to report, following the recent earthquake, that our employees were not hurt and that key properties Parque Arauco Kennedy and Paseo Arauco Estación and anchor stores in Arauco Maipú are open and running. There was damage to our properties, including Arauco San Antonio and Plaza El Roble, which we are still in the process of assessing. Parque Arauco holds insurance policies for all of its properties that are expected to cover the reasonable costs of repairs and business interruption,” commented Andrés Olivos, Parque Arauco’s Chief Executive Officer.

“With the uncertainty caused by a global economic crisis during the first half of the year, we decided to postpone the development of certain properties. However, we proceeded steadily with the development of those that were fully funded as well as with the modernization of existing shopping malls in Chile, Colombia and Peru, extending our regional footprint to more than 750 thousand square meters of GLA. We expect that the prevailing signs of a sustained economic recovery will allow us to accelerate investments throughout the region, most notably in Colombia, where we look forward to the opening of a new mall late in the year, in the city of Pereira, and to beginning the development of a new flagship property in the capital, Bogotá,” added Mr. Olivos.

Full-Year Results

Revenues for the full year increased by 15.9% to Ch$63,569 million from Ch$54,850 million in 2008, reflecting revenue growth derived from the completion of expansion and renovations at existing malls. Flagship property Parque Arauco Kennedy (“Kennedy”), where revenues grew by 9.2%, contributed significantly to the increase and Mall Arauco Maipú (“Maipú”), Paseo Arauco Estación (“Estación”), and Plaza El Roble (“El Roble”) each recorded significant revenue gains.

Gross Profit rose by 17.1% over the prior year to Ch$43,428 million. Cost of Sales increased by 13.3% as compared to 2008, mainly due to the expansion of GLA at existing properties and implementation of cost reduction measures at all properties, which led to a reduction of operating expenses per square meter as compared to the previous year of 5.1%. As a percentage of total revenues cost of sales decreased to 31.7% from 32.4% in 2008.

Net operating income (“NOI”), defined as revenues less cost of sales plus depreciation and amortization, increased by 19.2% to Ch$52,512 million from Ch$44,071 million in 2008. The operating performances of Kennedy, Estación and Maipú were the main drivers of the increase in NOI. Together the three properties contributed approximately 57% of the Company’s total NOI of Ch$29,810 million in 2009.

Selling, General and Administrative Costs increased by 7.0% as compared to the previous year, to Ch$7,217 million. The increase reflected higher spending on energy as well as costs associated with continued regional expansion and a 10.6% increase to GLA.

EBITDA for the year increased by 21.4% to Ch$45,295 million from Ch$37,323 million. Every property reported an increase in EBITDA and Kennedy, in particular, made a strong contribution to EBITDA growth. EBITDA margin also increased from 68.0% to 71.3%. It should be noted that the EBITDA result includes a property tax totaling Ch$3,114 million which is usually excluded from EBITDA by comparable mall developers in Latin America. When adjusted to exclude the property tax, the 2009 EBITDA margin was 76.2%.

The Company’s profit on investments in related companies more than doubled to Ch$6,014 million in 2009. This 121.1% increase reflected improved results at Inmobiliaria Mall Viña del Mar (Chile), where profits increased by 2.5%, and substantially better profitability at Alto Palermo, which in 2008 suffered significant losses due to a difficult credit environment in Argentina.

Net income rose by 169.6% toCh$29,253 million, or Ch$48.10 per share, from Ch$10,851 million, or 17.87 per share, in 2008. This improvement reflects substantial top line growth and the implementation of a cost reduction program that kept general and administrative costs in check despite the modernization and expansion of the portfolio of properties coupled with non operating results from investments in related properties and a contribution based on price level restatement.

FFO (“Funds from Operations”), defined as net income plus depreciation, more than doubled to Ch$38,337 million from Ch$17,842 million in the prior year, 2008.

Cash and cash equivalents Ch$54,515 million as of December 31, 2009 represented a 41.2% increase as compared to the balance of Ch$38,606 at the end of December 31, 2008.

During 2009, the Company increased its total GLA by 10.8% to 753 thousand square meters, while owned GLA increased by 6.9% to 423 thousand square meters. The completion of expansion projects, including the incorporation of additional GLA at Kennedy, Estación, and Arauco Express Pajaritos contributed to the increase. Occupancy rates remained high despite the economic turbulence experienced during the first half of the year due to Parque Arauco’s brand strength and practice of executing long term lease contracts with tenants. At the end of the year, property occupancy rates of between 99% and 100% were observed at all properties except Mall Arauco Maipú, where the rate fell from 91% to 89%, year-over-year.

“The Company benefited from the expansion and improvement of its portfolio of properties, as well as the return of more favorable economic conditions and higher tenant sales, which lifted properties’ variable income contributions during the fourth quarter,” commented Andrés Olivos, Parque Arauco’s CEO.

Fourth Quarter Results

Fourth quarter revenues increased by 3.4% to Ch$18,501 million from Ch$17,688 million in Q408, helped by a 7.3% increase in tenant sales. The quarterly results reflected increased revenues at most properties in the Company’s portfolio, and at Kennedy especially, where the expansion of owned leasable area by 5.1% contributed to commensurate top line growth. At Maipú and Estación, revenues rose by approximately by 36% and 33% respectively, with both properties’ performance improving primarily as a result of better tenant mix and more leasable area.

Quarterly gross profit of Ch$12,807 million was in line with the amount recorded in the fourth quarter of 2008, mainly due to a 15.6% increase in the cost of sales during the period to Ch$5,695 million, which reflected the incorporation of additional selling area and commensurate increases of energy consumption, as well as costs associated with an energy sales business that commenced operations at Estación and Plaza El Roble (“El Roble”) in 2009.

NOI increased by 4.3% to Ch$15,108 million from Ch$14,490 million in the fourth quarter of 2008. Gains in operating efficiency across the portfolio of properties and the physical expansion of Kennedy contributed to the slight improvement.

Selling, General and Administrative Costs declined by 38.0% to Ch$1,865 million as compared to the result recorded in the fourth quarter of 2008. The substantial reduction of SG&A costs as compared to the fourth quarter of the previous year reflects significantly lower provisions for uncollectible tenant payments, a reduction of fees paid for services provided by third parties and higher operating efficiency generally.

In the fourth quarter, EBITDA increased by 15.3% to Ch$13,243 million from Ch$11,482 million, while EBITDA margin increased to 71.6% from 64.9% in Q408. Expansion of the leasable area of portfolio properties and a contingency plan were the main reasons for the substantial improvement in EBITDA.

The Company recorded a non-operating loss of Ch$(445) million in the fourth quarter 2009, as compared to Ch$(5,046) million in the equivalent period of the prior year. Significantly improved results derived from the Company’s investments in Argentinean unit, Alto Palermo S.A., and Inmobiliaria Mall Viña del Mar in Chile, as well as a favorable price-level restatement due to the occurrence of negative inflation in Chile during 2009, factored heavily in the improvement of the non-operating result.

A quarterly profit of Ch$2,279 million from the Company’s investment in related companies reflected a very substantial improvement as compared to the gain of Ch$192 million reported in the fourth quarter of 2009. Losses at Alto Palermo S.A.’s credit division adversely affected the Q408 results, however in 2009 quarterly profits derived from Argentina rebounded as did profitability at Inmobiliaria Mall Viña del Mar S.A. in Chile, thanks to improvement in the regional economic climate.

Net income more than doubled to Ch$7,573 million, or Ch$12.45 per share, compared with net income of Ch$3,669 million, or Ch$6.04 per share, in the fourth quarter of 2008.

FFO increased by 82.9% to Ch$9,874 million, or Ch$16.24 per share, as compared to Ch$5,397 million in the fourth quarter of 2008. Contributing to this significant increase were gains of scale and operating efficiency at most malls, an improved non-operating result driven by substantially higher profits from the Company’s investment in Alto Palermo (Argentina), a favorable price-level restatement.

Property Highlights (Financial and Operating)

Parque Arauco Kennedy – Kennedy’s total income in 2009 increased by 9% to Ch$31,970, reflecting the addition of GLA from the Office Towers project, which has extended the property’s total GLA by more than 16,000 m² to 123,463 m². The full-year EBITDA of the shopping center rose by 15% to Ch$27,779 million, contributing more than half of the Company’s total, despite a 16.1% decline in the number of visitors as compared to the total in 2008 and flat year-over-year tenant sales. During the fourth quarter, revenues increased by 10.2% to Ch$9,756 and EBITDA rose to Ch$8,988, a 25.2% increase that was partly driven by a 77% decline in SG&A due to lower provisions for uncollectible accounts receivable and reduced marketing expenses, as well as the strong operating performance of anchor stores.

Mall Arauco Maipú – This shopping center, located in Santiago, Chile, has been gaining greater recognition from its urban customer base. After undergoing substantial expansion since 2007, the property now has a GLA of 54,267 m² and generated income of Ch$6,882 million in 2009, a 19% increase over the total recorded in 2008. The property’s 2009 EBITDA increased by 22% as compared to the result in the prior year, to Ch$4,792 million. The successful incorporation of affiliated strip mall, Arauco Express Pajaritos, also contributed to the improved results at this property. Fourth quarter revenues and EBITDA each grew by approximately 35% to Ch$2,242 and Ch$1,547 respectively.

Arauco Express Pajaritos (“Pajaritos”) – The financial results of this strip center, which commenced operations in November 2008 and has a current GLA exceeding 4,000 m², are consolidated in those of Mall Arauco Maipú.

Plaza El Roble – The property contributed total income of Ch$3,404 million during 2009, an increase of 12% as compared to the previous year. EBITDA also increased year-over-year, by 5% to Ch$2,458 million, despite an increase in SG&A expenses mainly associated with the energy sales business that was launched at the property in April. Quarterly revenues rose by 26.8% to Chh$1,025 million from Chh$808 million in 2008, while EBITDA increased by 28.7% to Ch$714 million in the fourth quarter as a result of higher variable income associated with higher tenant sales levels.

Paseo Arauco Estación – Total income of Ch$10,177 in 2009 was 41% higher than the amount recorded in the previous year, while EBITDA increased by 45% to Ch$6,973. These substantially improved results were mainly attributable to Estación’s expanded selling area and a 24% increase in tenant sales. In the fourth quarter, improved operating performance combined with the economic recovery observed in Chile drove income at Estación higher to Ch$2,692 million, a 33% increase over the amount recorded by in the equivalent period in 2008, and EBITDA to Ch$1,714 million, an increase of 41.9%.

Mega Plaza Norte – Revenues at this urban mall located in Lima, Peru increased to Sol$56,189 thousand in 2009, a 10% increase as compared to the prior year, despite a 6% decline in tenant sales driven by an increasingly competitive environment in the capital city. Anchor stores performed well, comprising 72% of annual sales. EBITDA also rose, by 5%, in 2009 to Sol$35,738 thousand, largely due to the property’s expansion and improved operating efficiency. Fourth quarter revenues of Sol$15,544 thousand represented a 7.2% improvement as compared to the result in Q409, while quarterly EBITDA improved by 7.8% to Sol$10,287, year-over-year, despite a 16.7% increase in SG&A expenses due to higher spending on marketing and external services.

Non-Consolidated Assets

Inmobiliaria Mall Viña del Mar S.A. (Chile) – Net profit for the full year 2009 increased by 2.5% to Ch$7,498 million as compared to the profits recorded in 2008. However, EBITDA rose by 2.1% as compared to the previous year, and fourth quarter net profit derived from the two properties increased by 13.5% as compared to Q408, thanks to an improved economic climate. Parque Arauco holds a 33.3% stake in each of these shopping centers which, combined, have a GLA of more than 100,000 m².

Marina Arauco – Located in Viña del Mar, Chile, Marina Arauco recorded and EBITDA of Ch$10,009 during 2009, a 3% increase as compared to the result in 2008, despite a 1% decline in total revenues to Ch$9,846 during the same period. Fourth quarter results were slightly better than in the Q408, as the property’s performance benefited from an improved economic scenario in Chile, resulting in a 3.1% year-over-year increase in quarterly revenues to Ch$2,903 million and EBITDA of Ch$2,199 million, a 17% increase as compared to the amount in Q408.

Mall Center Curicó – This shopping center, located to the south of Santiago, Chile, generated 80% of annual sales from anchor stores in 2009. The property’s total income was Ch$3,286, 7% lower than in 2008, while EBITDA increased by 1% to Ch$3,530 million. Fourth quarter income was Ch$797 million, slightly lower than the result in Q408, while EBITDA rose by 34.3% to Ch$1,158 million.

Alto Palermo S.A. (Argentina) – Parque Arauco holds a 31.6% share on a fully diluted basis in Alto Palermo S.A. (APSA) of Argentina, which owns eleven shopping centers in Argentina, 7 of which are located in the capital city, Buenos Aires. Combined, these eleven shopping centers have a total GLA of 232,659 m². This unit contributed a net income of Ch$12,695 million in 2009, and fourth quarter income was Ch$5,504.

In January 2010, Parque Arauco granted a call option to Argentinean partner IRSA for US$6 million that gives IRSA the right to purchase Parque Arauco’s 31% stake in APSA for US$126 million (including the US$6 million already paid). The call option is valid until August 31, 2010, and extendable until November 30, 2010. Should IRSA execute this option, Parque Arauco expects to use the proceeds generated in the funding plan for development of regional properties.

Outlook

With the effects of the global economic crisis significantly diminished, Parque Arauco expects 2010 to be a year of consolidation in which it resumes some of the projects postponed during 2009, while selectively accelerating the development of assets in Chile, Colombia, and Peru, where it plans to invest an additional US$360 million through 2013, bringing the total investment in those markets to US$870 million since 2007.

The Company is continuing to broaden its diverse portfolio of assets through the development of properties Arauco San Antonio and Mall Paseo Marina in Chile, as well as Mega Express Villa and Parque Arequipa in Peru. In Colombia, Mall Alameda Pereira is expected to open in the city of Pereira in late 2010, and the longer-term development of a flagship property in the capital city of Bogota is also expected. In Argentina, a potential sale of the Parque Arauco’s 31% interest in APSA, an operator of 11 shopping malls in that country, would generate proceeds to fund the development of projects in each of the three markets in which the Company operates.

Expansion and New Development Projects

Arauco San Antonio – San Antonio – Chile: Parque Arauco S.A. has completed much of construction of this diverse commercial center, which will feature a hotel in addition to the casino, which began operating in September, and a shopping mall which opened in December. The Company was able to advance improvements to hotel during the fourth quarter, and expects the full property to be operational as of the third quarter of 2010. Parque Arauco holds a 51% interest in this project which is expected to have a total GLA of 31,000 m² following a total investment of US$45 million.

Mega Express Villa – Chorrillos – Perú: This property, located in Chorrillos, Perú, opened in November 2009 and has a GLA of 6,000 m², following a total investment of US$7 million, in which Parque Arauco has a 50% participation.

Mall Alameda Pereira – Pereira – Colombia: Approximately 65% of the physical construction of this shopping center, located in Pereira, Colombia, is complete, and commercial operations are expected to commence during the fourth quarter of 2010. Parque Arauco will hold a 30.3% interest in this shopping center, the first to be operated by the Company in the Colombian market, which is expected to have a total GLA of 40,000 m² following a total investment of approximately US$88 million. Lease agreements with three well-known anchor tenants have been secured, and the mall has already attracted a number of leading international and domestic retail brands.

Mall Paseo Marina - Viña del Mar – Chile:

This commercial center, to be located next to Mall Marina Arauco in Viña del Mar, Chile, will feature small stores, restaurants, offices and entertainment. The property is expected to open during the second quarter of 2010 with a total GLA of 11,000 m² following a total investment of US$13.5 million.

Parque Arequipa – Arequipa – Peru: Parque Arauco purchased an interest in a parcel of land in Arequipa, Peru, upon which it will commence building a new shopping center in March 2010 with a local partner. The mall, which will include four anchor stores, three medium sized retail stores, and 70 smaller shops, is expected to have a GLA of 35,000 m² following a total investment of US$50 million. Parque Arauco will hold a more than 50% interest in this shopping center, the third that it will operate in the Peruvian market.

Parque La Colina - Bogotá – Colombia: Parque Arauco purchased prime real estate in the capital city of Bogotá, which will be used for the development of a three-level, flagship shopping center with a GLA of 67,000 m² following a total investment of US$140 million. The Company believes that its future development of this parcel in Boyacá, one of the most commercially active districts in Bogotá, will raise its profile among middle class and affluent Colombian consumers. The property is expected to begin commercial operations in the end of 2012.

About Parque Arauco

Parque Arauco, based in Chile, is one of Latin America’s largest developers and operators, in terms of GLA, of retail real estate in Latin America. Over the last 25 years, Parque Arauco has developed, operated and managed shopping centers throughout Chile. The Company has a 31.6% ownership interest in Argentina’s Alto Palermo, S.A., (APSA) which is traded on the Buenos Aires Stock Exchange and the NASDAQ. APSA is the owner and operator of 11 shopping centers. Parque Arauco also has a 45% interest in Peru’s Inmuebles Panamericana, S.A., owner and operator of one of Lima’s largest shopping centers.

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Parque Arauco. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the economies in which we work and the industry, among other factors; therefore, they are subject to change without prior notice.

Parque Arauco S.A.
Consolidated Income Statement
Chilean GAAP
Ch$ millions
		Quarter Ended December 31,						Year End December 31,
		Q409		Q408		Chg. %		2009		2008		Chg. %
Revenues		18,501		17,688		4.6%		63,569		54,850		15.9%
Cost of Sales		(5,695)		(4,926)		15.6%		(20,140)		(17,770)		13.3%
Gross Profit		12,807		12,762		0.4%		43,428		37,080		17.1%
Selling, General and Admin. Expenses		(1,865)		(3,008)		-38.0%		(7,217)		(6,748)		7.0%
OPERATING INCOME		10,942		9,754		12.2%		36,212		30,332		19.4%
EBITDA		13,243		11,482		15.3%		45,295		37,323		21.4%
Financial Income		423		1,305		-67.6%		2,681		4,364		-38.6%
Profit on Investment. in Related Companies		2,279		192		1088.1%		6,014		2,720		121.1%
Other non-operating Income		451		517		-12.9%		1,053		1,086		-3.0%
Amortization of Goodwill		(89)		(117)		-23.6%		(293)		(342)		-14.3%
Financial Expenses		(2,595)		(3,047)		-14.8%		(10,284)		(10,020)		2.6%
Other non-operating Expenses		(633)		(1,678)		-62.3%		(2,696)		(2,627)		2.6%
Price-level Restatement		(325)		(2,706)		-88.0%		1,791		(9,864)		-118.2%
Exchange Differentials		44		488		-91.1%		(765)		(115)		567.6%
NON-OPERATING INCOME		(445)		(5,046)		91.2%		(2,498)		(14,798)		-83.1%
Profit before Income Tax & Extraord. Items		10,496		4,708		122.9%		33,714		15,534		117.0%
Income Tax		(2,106)		(79)		2560.2%		(2,752)		(2,284)		20.5%
Profit (Loss) before Minority Interest		8,390		4,629		81.2%		30,962		13,250		133.7%
Minority Interest		(868)		(965)		-10.1%		(1,887)		(2,421)		-22.0%
Net Profit (Loss)		7,523		3,664		105.3%		29,074		10,829		168.5%
Amortization of Negative Goodwill		50		5		846.8%		179		22		730.3%
NET INCOME		7,573		3,669		106.4%		29,253		10,851		169.6%
Depreciation & Amortization		2,301		1,728		33.2%		9,084		6,991		29.9%
Financial and Operating Highlights
		Quarter Ended December 31,						Year End December 31,
		2009		2008		Chg. %		2009		2008		Chg. %
Revenues (Ch$ Millions)		18,501		17,688		4.6%		63,569		54,850		15.9%
NOI (Ch$ Millions)		15,107		14,490		4.3%		52,512		44,071		19.2%
NOI Margin %		81.7%		81.9%		-0.3 pp		82.6%		80.3%		2.3 pp
EBITDA (Ch$ Millions)		13,243		11,482		15.3%		45,295		37,323		21.4%
EBITDA Margin %		71.6%		64.9%		6.7 pp		71.3%		68.0%		3.2 pp
Net Income (Ch$ Millions)		7,573		3,669		106.4%		29,253		10,851		169.6%
Net Income Margin %		40.9%		20.7%		20.2 pp		46.0%		19.8%		26.2 pp
FFO (Ch$ Millions)		9,874		5,397		82.9%		38,337		17,842		114.9%
FFO Margin %		53.4%		30.5%		22.9 pp		60.3%		32.5%		27.8 pp
Weighted Avg. Shares (million)		608.17		607.25		~		608.17		607.25		~
EPS ($)		12.45		6.04		106.1%		48.10		17.87		169.2%
Total Tenant Sales (Ch$ Millions) 1		188,082		175,293		7.3%		625,309		620,117		0.8%
Total GLA (m2)		753,095		679,467		10.8%		753,095		679,467		10.8%
Parque Arauco GLA (m2)		422,858		395,401		6.9%		422,858		395,401		6.9%
1. Total Tenant Sales = Sales of Consolidated Assets. Doesn't include Mall Marina Arauco, Mall Center Curico and Alto Palermo S.A.

Consolidated Balance Sheet
(Ch$ millions)		December 31,
		2009			2008		% Change
Assets:
Cash and Cash Equivalent		54,515			38,606		41.2	%
Accounts Receivable		18,007			13,831		30.2	%
Other Current Assets		14,612			12,880		13.4	%
Total Current Assets		87,133			65,317		33.4	%
Net Property, Plant and Equipment		426,274			381,431		11.8	%
Investments in Related Companies		71,040			80,255		-11.5	%
Other Assets		31,363			41,736		-24.9	%
Total Assets		615,810			568,740		8.3	%
Liabilities & Stockholder's Equity:
Short Term Debt		16,263			14,069		15.6	%
Other Current Liabilities		10,231			9,915		3.2	%
Total Current Liabilities		26,495			23,984		10.5	%
Long Term Debt		286,267			256,322		11.7	%
Other Long Term Liabilities		24,250			19,557		24.0	%
Total Long Term Liabilities		310,517			275,879		12.6	%
Minority Interest		26,122			18,703		39.7	%
Stockholder's Equity
Capital		152,644			148,775		2.6	%
Reserves and Others		(10,904	)		13,964		-178.1	%
Retained Earnings		110,936			87,435		26.9	%
Total Liabilities & Stockholder's Equity		615,810			568,740		8.3	%

Property Financial Highlights
Chilean GAAP
(Ch$ millions)		Full Year Ended
*(Sol$ thousands)		December 31,
		2009		2008		% Change
Total Revenues
Parque Arauco Kennedy		31,970		29,265		9.2%
Arauco Maipu (1)		6,882		5,776		19.1%
* Mega Plaza Norte		56,189		51,148		9.9%
Marina Arauco (unconsolidated)		9,846		9,982		-1.4%
Mall Center Curico (unconsolidated)		3,286		3,544		-7.3%
Mall Plaza El Roble		3,404		3,044		11.8%
Paseo Arauco Estacion (2)		10,177		7,290		39.6%
Gross Profit
Parque Arauco Kennedy		25,303		23,141		9.3%
Arauco Maipu (1)		4,388		3,590		22.2%
* Mega Plaza Norte		39,406		36,381		8.3%
Marina Arauco (unconsolidated)		8,994		6,954		29.3%
Mall Center Curico (unconsolidated)		3,323		2,393		38.9%
Mall Plaza El Roble		2,553		2,345		8.9%
Paseo Arauco Estacion (2)		7,751		5,134		51.0%
EBITDA
Parque Arauco Kennedy		27,779		24,058		13.4%
Arauco Maipu (1)		4,792		3,934		17.9%
* Mega Plaza Norte		35,738		34,145		4.5%
Marina Arauco (unconsolidated)		10,009		9,757		2.5%
Mall Center Curico (unconsolidated)		3,530		3,497		0.9%
Mall Plaza El Roble		2,458		2,349		4.4%
Paseo Arauco Estacion (2)		6,919		4,810		43.8%
Gross Margins
Parque Arauco Kennedy		79%		72%		9.9%
Arauco Maipu (1)		64%		52%		23.1%
Mega Plaza Norte		70%		65%		7.9%
Marina Arauco (unconsolidated)		91%		71%		28.7%
Mall Center Curico (unconsolidated)		101%		73%		38.5%
Mall Plaza El Roble		75%		69%		8.7%
Paseo Arauco Estacion (2)		76%		50%		52.3%
EBITDA Margins
Parque Arauco Kennedy		87%		82%		6.1%
Arauco Maipu (1)		70%		68%		2.9%
Mega Plaza Norte		64%		67%		-4.5%
Marina Arauco (unconsolidated)		102%		98%		4.1%
Mall Center Curico (unconsolidated)		107%		99%		8.1%
Mall Plaza El Roble		72%		77%		-6.5%
Paseo Arauco Estacion (2)		68%		66%		3.0%

(1) Number reflects Q309 results of the affiliated commercial property, Arauco Express Pajaritos.

(2) Formerly named Mall Plaza Estacion

Property Operating Indicators
Chilean GAAP
(Ch$)		Cumulative to
*(Sol$ thousands)		December 31,
		2009		2008		% Change
Monthly Revenue per m²
Parque Arauco Kennedy		233,036		240,736		-3.2%
Arauco Maipu		104,340		108,491		-3.8%
* Mega Plaza Norte		880		1,013		-13.1%
Marina Arauco (unconsolidated)		205,484		198,839		3.3%
Mall Center Curico (unconsolidated)		78,267		72,745		7.6%
Mall Plaza El Roble		176,440		179,663		-1.8%
Paseo Arauco Estacion (1)		116,330		139,348		-16.5%
Monthly Rent per m²
Parque Arauco Kennedy		19,044		20,304		-6.2%
Arauco Maipu		8,025		7,832		2.5%
* Mega Plaza Norte		42		42		0.0%
Marina Arauco (unconsolidated)		10,819		14,118		-23.4%
Mall Center Curico (unconsolidated)		4,797		5,846		-17.9%
Mall Plaza El Roble		9,725		9,604		1.3%
Paseo Arauco Estacion (1)		11,902		14,201		-16.2%
Total Visitors (thousands)
Parque Arauco Kennedy		24,362		29,041		-16.1%
Arauco Maipu		14,007		18,235		-23.2%
Mega Plaza Norte		34,012		34,811		-2.3%
Marina Arauco (unconsolidated)		18,121		18,086		0.2%
Mall Center Curico (unconsolidated)		6,722		7,175		-6.3%
Mall Plaza El Roble		13,745		N/A		~
Paseo Arauco Estacion (1)		N/A		N/A		~
% Occupancy
Parque Arauco Kennedy		100.0%		100.0%		0.0%
Arauco Maipu		90.0%		91.0%		-1.2%
Mega Plaza Norte		100.0%		100.0%		-0.5%
Marina Arauco (unconsolidated)		100.0%		99.0%		0.2%
Mall Center Curico (unconsolidated)		99.0%		98.0%		0.5%
Mall Plaza El Roble		100.0%		99.0%		0.5%
Paseo Arauco Estacion (1)		99.0%		98.0%		1.4%

(1) Formerly named Mall Plaza Estacion