ALOS3 ALLOS

ALLOS S.A. is a Brazilian company in the shopping mall sector, the result of a broad consolidation process that brought together three major platforms: Aliansce Shopping Centers, Sonae Sierra Brasil and brMalls Participações. The origins of the operation date back to 2003, with the incorporation of Cayapas Empreendimentos Imobiliários Ltda., a joint venture between Renato Feitosa Rique and the U.S.-based General Growth Properties (GGP), which was renamed Aliansce Shopping Centers in 2005 and became a corporation in 2007. In parallel, the Portuguese group Sonae Sierra established its presence in the country in 2003 through Sonae Sierra Brasil, which expanded via inaugurations and acquisitions of stakes in several malls. Both companies went public on B3, Aliansce in 2010 (ALSC3) and Sonae Sierra in 2011 (SSBR3), consolidating themselves as important physical retail platforms. In 2019, the business combination between Aliansce Shopping and Sonae Sierra gave rise to Aliansce Sonae Shopping Centers S.A., now ALLOS, with shares traded in the Novo Mercado segment of B3 under the ticker ALOS3.

The company’s recent trajectory has been marked by significant M&A activity and active portfolio management. After the first business combination, the company stepped up acquisitions of additional stakes in strategic assets such as Shopping Taboão, Shopping Grande Rio, Shopping da Bahia and Shopping Leblon, while at the same time divesting assets considered less aligned with its strategy or with lower value-creation potential, such as West Plaza, Santa Úrsula, Caxias Shopping, Boulevard Shopping Vila Velha, Uberlândia Shopping, Boulevard Londrina Shopping and others. In 2022, a second major business combination was announced and approved, this time with brMalls Participações S.A., following negotiations with the board of directors of the then competitor and subsequent review by CADE, which significantly increased the operating scale and cemented ALLOS as one of the largest shopping mall platforms in Latin America.

ALLOS’s business model is centered on the real estate operation of shopping malls, focusing on generating recurring revenue through rents and related services. The company operates across the entire value chain of the projects, from planning, development and incorporation to day-to-day management, leasing and operation of the assets. The main source of revenue is the leasing of retail space, including lease agreements, assignment of usage rights and transfer fees, which in 2024 accounted for around 68.7% of consolidated net revenue. Parking operations, whether directly managed or through third parties, constitute a second relevant revenue source, representing approximately 20.1% of net revenue in the same year. The provision of administrative and leasing services, commercialization of mall and merchandising spaces, development and planning complements the model, with an 11.2% share of 2024 net revenue, which reinforces the integrated nature of the operation, though with a clear predominance of real estate exploitation of the company’s own malls.

From an operational standpoint, ALLOS structures its activities into two major blocks: shopping mall activities (rental and parking) and service provision. In shopping mall activities, the company operates as owner or co-owner of the properties, generally through special purpose entities, real estate investment funds, consortia or “pro-indiviso” condominiums. Compensation derives from lease contracts that may combine a fixed minimum rent and a percentage of sales, with terms, conditions and adjustments determined by market benchmarks and the tenants’ sales performance. In parking operations, revenue may come from leasing areas operated by third parties or from direct operation, providing an additional source of monetization of visitor traffic. In service provision, ALLOS markets vacant stores, mall and merchandising spaces, and exploits advertising panels, kiosks and stands, in addition to offering administrative and commercial management services for third-party malls, thereby expanding the platform’s reach without the need for direct real estate investment.

In terms of portfolio, as of April 2025 ALLOS had 56 shopping malls under its platform, of which 45 with equity stakes and 11 managed for third parties. This set totaled approximately 1.265 million m² of owned gross leasable area and 336 thousand m² of managed GLA, spread across 16 Brazilian states and all five regions of the country. Among the main owned assets are large-scale and regionally relevant malls such as NorteShopping, Shopping Tijuca, Plaza Niterói, Parque D. Pedro Shopping, Manauara Shopping, Shopping Tamboré, Shopping da Bahia, Shopping Recife, Goiânia Shopping, Shopping Leblon, Shopping Vila Velha, among others. The geographic distribution of the total GLA of owned malls at the end of 2024 was relatively diversified: about 27% in the state of São Paulo, 21% in the state of Rio de Janeiro, 25% in the North and Northeast regions and 26% in other regions, which mitigates dependence on a single market and exposes the company to different regional consumer dynamics.

ALLOS’s revenue base is broadly diversified among thousands of tenants operating in segments such as apparel, footwear, food, electronics, services, entertainment and convenience. No individual client accounted for more than 10% of net revenue in 2024, a typical feature of mature shopping mall platforms, in which tenant concentration risk is reduced. The company positions its malls as leaders or co-leaders in their catchment areas, prioritizing regions with high population density and strong consumer demand. The strategy includes organic expansions of existing assets, increasing stakes in projects deemed strategic, and continuous assessment of acquisitions and divestments, focusing on malls with higher spending per visit and strong regional dominance.

On the regulatory front, ALLOS’s activity is framed by the legal framework governing the Brazilian real estate market, without specific legislation for shopping malls but with extensive use of structures such as “pro-indiviso” condominiums, special purpose entities, consortia and real estate investment funds. “Pro-indiviso” condominiums are governed by the Civil Code, with indivisible co-ownership and proportional sharing of income and expenses among co-owners. SPEs and consortia follow the Brazilian Corporations Law and related rules, while REIFs are regulated by specific legislation and by the Brazilian Securities and Exchange Commission (CVM), including CVM Resolution 175 and other applicable rules. This framework allows ALLOS to structure its shopping mall investments in a way that optimizes governance, financing and profit sharing among different institutional investors and partners.

The company has also developed initiatives related to the digital transformation of retail and the integration of physical and online channels. In 2021, it created Alsotech, a subsidiary dedicated to “phygital” solutions, in partnership with an executive considered a reference in the country’s e-commerce sector. Alsotech operates in offering e-commerce and marketplace platforms for tenants, structuring logistics ecosystems, data analytics and corporate venture capital initiatives, with investments in startups such as Box Delivery, focused on last-mile delivery technologies, and Hubsell, a platform that integrates retailers and marketplaces. On the environmental and social front, some malls in the portfolio have structured corporate responsibility policies, with actions related to efficient water and energy consumption and waste management, such as Manauara Shopping in Manaus. These initiatives are part of the broader environmental, social and governance agenda, which is gaining relevance in the management of large-scale real estate assets such as those that underpin ALLOS’s business.

ALLOS’s common shares, traded on B3 under the ticker ALOS3, represent an ownership interest in an integrated real estate platform focused on shopping malls, with revenues predominantly indexed to lease contracts and indirect exposure to the performance of retail and household consumption. The company operates with a high average occupancy rate in its assets and seeks to capture operational and overhead synergies arising from the business combinations carried out, relying on data intelligence tools to optimize the tenant mix, increase productivity per square meter and strengthen the competitive positioning of its malls in their respective markets.