Parque Arauco Reports Third Quarter 2012 Results

  Parque Arauco Reports Third Quarter 2012 Results

  *Third quarter total tenant sales increased 10% to Ch$ 865,460 million.
  *Strong revenue growth of 14.9% to Ch$ 24,164 million as compared to 3Q
    2011; Own GLA increased 14%.
  *EBITDA increased 13.7% year-over-year to Ch$ 17,407 million, delivering an
    EBITDA margin of 72.0%
  *Strong cash position of Ch$ 116,517 million; FFO increased 27% over 3Q
    2011
  *Started construction on three strip malls in Peru to add 32,300 m^2 of GLA
  *Buenaventura outlet mall property in Santiago commenced operations; Adds
    20,000 m^2 of GLA
  *Five major expansions underway at Parque Arauco Kennedy, Mall Arauco
    Maipu, Paseo El Roble, Marina Arauco and Megaplaza to add almost 60,000m^2
    of additional GLA.

Business Wire

SANTIAGO, Chile -- November 07, 2012

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 third quarter
ended September 30, 2012. The following financial and operating information,
unless otherwise indicated, was prepared and presented in accordance with
IFRS. Under IFRS, Parque Arauco consolidates 33.3% of the financial results of
Marina Arauco and Mall Center Curicó and 100% of the results of all other
properties. 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 delivered strong revenues, operating and bottom line
profitability during the third quarter. The Company continues to execute its
strategic plan to expand and diversify its portfolio throughout the Andean
region to include shopping centers, strip malls and outlet malls. Construction
began on three strip mall properties in Peru that are expected to contribute
GLA of 32,300m^2 in the first half of 2013. We were also pleased to begin
operations of the Buenaventura outlet mall, in Santiago in September which
added GLA of 20,000 m^2 to our portfolio.

We are also focused on reinforcing the strength of current properties through
renovations, expansions and bringing top new brands to the Chilean market. The
new section of Parque Arauco Kennedy known as the Luxury District is set to
open in Q4 2012 and will introduce brands such as Burberry, Dolce & Gabbana,
Carolina Herrera and Omega to the Chilean market for the first time.” said
Chief Executive Juan Antonio Álvarez.

Third Quarter Consolidated Results

Revenues grew 14.9% to Ch$ 24,164 million in 3Q 2012 due to GLA expansion of
12.3% and rental revenue growth of 7.0%. Total GLA in Chile grew 9.8% to
457,700 m^2, with the growth coming from the addition of 6 strip malls from
the consolidation of Arauco Express, the partial opening of Arauco Quilicura
and the consolidation of the Buenaventura outlet mall beginning in September.
In Peru, rental revenue grew 8.9% and total GLA increased 32.1%, driven by the
additions of MegaPlaza Chimbote and Villa El Salvador. In Colombia, rental
revenues at Parque Arboleda grew 64.0% continuing to demonstrate the strong
growth potential of this market.

Gross profit for the quarter was Ch$ 19,554 million, a year-over-year increase
of 13.1%. The cost of sales grew 22.9% to Ch$ 4,609 million primarily due to
higher GLA, additional costs related to new properties and renovations, and an
increase in Chile’s property tax following a temporary tax rate freeze in
2011.

Administrative expenses decreased 0.6% to $Ch 2,568 million partly due to new
properties reaching more mature stags and no longer requiring the additional
costs incurred in the first years of operation. Administrative expenses
include costs related to the Company’s growth plans and cost restructuring
initiatives, advertising and marketing expenses as well as facilities costs
which tend to be greater in the first year of operation of new properties.

Depreciation and amortization expenses decreased 30.9% to Ch$ 421 million as
compared to Ch$ 610 million in 3Q 2011.

The Company recorded EBITDA of Ch$ 17,407 million, a 13.7% improvement
compared to the Ch$ 15,316 million recorded in 3Q 2011. The Company maintained
an EBITDA margin of 72.0% due to additional revenue from added GLA, rental
revenue growth, and efficient management of administrative expenses.

Non-operating expenses totaled Ch$ 933 million in 3Q 2012 compared to Ch$
4,111 million in 3Q 2011. Financial income contributed Ch$ 2,645 million, a
231.4% increase compared to 3Q 2011, as the Company earned interest on its
larger cash position relative to the same period last year, as a result of the
equity issuance completed in October of 2011. Financial expenses increased
5.6% to Ch$ 4,898 million primarily driven by additional interest payments on
the debt offering issued in January 2012. Other income was Ch$ 690 million, as
a result of restructuring the ownership of the La Colina property between
Parque Arauco (55%) and Bancolombia (45%), compared to an expense in 3Q 2011
of Ch$ 92 million. Foreign exchange differences resulted in a gain of Ch$ 54
million compared to a gain of Ch$ 1,145 million in 3Q 2011 when the Company’s
Sol-denominated bonds, lent to finance operations in Peru, benefited from the
appreciation of the Peruvian currency. The lower inflationary environment in
3Q 2012 resulted in a gain on indexed assets and liabilities of Ch$ 575
million, against a loss of Ch$ 1,563 million in 3Q 2011.

The income tax provision totaled Ch$ 4,261 million, significantly higher than
the 3Q 2011 charge of Ch$ 1,294 million. The increase is attributable to an
increase in the Chilean income tax rate from 17% to 20%. As a result of the
higher tax rate, the Company allocates additional funds to the deferred tax
account to compensate for the increase in potential tax provisions on the
future sale of assets. Excluding the non-cash deferred tax expense, the
adjusted tax provision totaled Ch$ 1,974 million, a 53% increase compared to
3Q 2011.

Net income was Ch$ 11,791 million, or Ch$ 16.78 per share, as compared with
net income of Ch$ 9,300 million, or Ch$ 14.55 per share, in 3Q 2011. The
weighted average number of shares outstanding during the quarter was 702.75
million as compared to 622.60 million in 3Q 2011.

FFO (“Funds from Operations”), defined as net income plus depreciation and
amortization minus a gain (loss) on indexed assets and liabilities minus any
gains (losses) on other non-cash items, increased 26.8% to Ch$ 13,932 million.

Cash and cash equivalents totaled Ch$ 116,517 million at the end of 3Q 2012
providing the Company with the financial capabilities to invest funds to
develop, renovate and expand properties. Net financial debt at the end of 3Q
2012 was Ch$ 249,283 million. The Company remains comfortably within its
financial covenants with Liabilities/ (Equity+ Minority Interest) of 0.80 as
compared to a limit of 1.4 and EBITDA/Financial Expenses of 3.6, substantially
above the requisite of 2.5.

At the end of 3Q 2012, the occupancy rate was 97.4% compared to 96.8% at the
end of 3Q 2011.

The Company holds a strategic land bank with assets in Chile, Colombia and
Peru that provide future growth opportunities.

Nine Months 2012 Results

Total revenue for the first nine months of 2012 was Ch$ 71,359 million, an
increase of 17.0% as compared to the same period of 2011. Additional GLA and
higher rental revenue were the primary drivers of growth. Gross profit for the
first nine months improved 14.1% to Ch$ 56,701 million.

Operational costs (SG&A plus Cost of Sales) increased 16.3% to Ch$ 21,795
million. Operational cost, adjusted for the increase in GLA, grew 6.4%,
including inflation. First nine months 2012 EBITDA increased 15.7% to Ch$
50,909 million with an EBITDA margin of 71.3%. Net income grew 24.4% to Ch$
27,251 million.

Project Pipeline

This section includes projects that are currently under construction or have
been approved by the Board to commence construction.

Greenfield Projects


                                                        Total        Est.
Project      Country   Est.     GLA     PARAUCO    Investment  Operational
                         Opening   (m2)     Ownership   (US$         EBITDA (US$
                                                        millions)    millions)*
Arauco        Chile      1H 2013   33,000   100%        50           5.0
Quilicura
Bucaramanga   Colombia   1H 2013   30,000   55%         100          10.0
Mega
Express       Perú       1H 2013   7,500    50%         10           1.0
Chincha
Mega
Express       Perú       1H 2013   8,000    50%         13           1.0
Barranca
Mega
Express       Perú       1H 2013   16,800   50%         12           1.2
Cañete


* Estimated Operational EBITDA refers to the expected annual EBITDA when the
property has reached maturity.

Expansion Projects


                                                                   Total
Project                Country  Est.     GLA (m2)  PARAUCO    Investment
                                  Opening              Ownership   (US$
                                                                   millions)
Falabella in Arauco     Chile     4Q 2012   14,000     100%        15
Maipú
Expansion El Roble -    Chile     1H 2014   12,500     100%        20
Chillán
Boulevard IV Kennedy    Chile     1Q 2013   5,000      100%        24
Expansion Marina        Chile     2H 2014   40,000     33.3%       67
Arauco
Expansion in            Perú      2H 2013   27,000     50%         58
MegaPlaza


Acquisitions and other developments

Buenaventura in Santiago, Chile: The Company commenced its operation of the
property in September 2012. The transaction is representative of the Company’s
strategy to diversify its properties among shopping centers, strip malls, and
outlet stores. The investment in Buenaventura is US$ 32 million and the
property will contribute approximately 20,000 m^2 of GLA.

Mega Express Strip Mall Projects in Peru: In partnership with the Wiesse
Family, the Company has begun construction on three Mega Express strip malls
in Peru: Mega Express Chincha, Mega Express Barranca and Mega Express Cañete.
Combined, the properties will contribute a total GLA of 32,300 m^2 and are
expected to open in the first half of 2013.

Strip Malls in Chile: The Company has completed due diligence on its
partnership with AURUS, a Chilean asset manager with a strong real estate
division, with whom the Company plans to develop strip malls throughout Chile.
Parque Arauco has a 51% stake and AURUS will co-invest 49% in the projects.
The initial aggregate GLA is 12,000 m^2 with AURUS contributing 7 operating
assets to the format. The Company plans to open 3 to 5 strip malls annually in
2013, 2014, and 2015. The properties will operate under the subsidiary, Arauco
Express.

3Q Operating and Financial Property Highlights

Chile

Parque Arauco Kennedy (PAK): PAK generated total EBITDA of Ch$ 7,199 million
in 3Q 2012, a 0.75% increase compared to 3Q 2011 of Ch$ 7,155. The Company
continues to make investments to reinforce the property’s focus on
entertainment, services, and restaurants highlighted by the 7,000 m2 “Luxury
District” to open in 2Q 2013. EBITDA margin increased 2.8 pp and recorded
lower cost of sales and SG&A of Ch$ 175 million and Ch$ 778 million,
respectively. The property continues to benefit from a strong brand name and
location and its sales totals were fairly balanced between anchor tenants
(41%) and small stores (50%).

Mall Arauco Maipú: This shopping center, located in a fast growing, emerging
middle class neighborhood in Santiago, Chile, continues to show impressive
growth generating total revenue of Ch$ 2,328 million in 3Q 2012, an increase
of 10.9% compared to 3Q 2011. EBITDA improved to Ch$ 1,833 million, an
increase of 13.8%, as compared to the same period of 2011. The property is
expanding 14,000 m^2 of GLA to open a Falabella store in Q4 2012.

Plaza El Roble: El Roble contributed total revenue of Ch$ 1,018 million during
3Q 2012, an increase of 3.7% from the same period in 2011 while EBITDA
generated Ch$ 731 million. The property is adding 12,500 m^2 of GLA which will
consist of fashion stores, a cinema, an improved food court and a Hites
department store. The property’s current GLA of 25,000 m^2 is now operating at
an occupancy level of 97.8%.

Paseo Arauco Estación: Estación earned total revenue of Ch$ 3,267 million in
3Q 2012, a 3.0% improvement from the same period last year. The mall’s EBITDA
grew 11.3% to Ch$ 2,554 million. This is a property in the process of changing
the tenant mix and redesigning the GLA to attract and accommodate more
international brands and achieve a higher rent/m^2.

Arauco San Antonio: San Antonio contributed income of Ch$ 833 and EBITDA of
Ch$ 612 million in 3Q 2012. The Company has indentified a third party to
operate the hotel which will be integrated into the property’s operations in
1Q 2013.

Mall Marina Arauco: This extremely profitable property, situated in Viña del
Mar, Chile, generated total revenue of Ch$ 3,180 million during 3Q 2012, a
year-over-year increase of 8.9%. The property’s EBITDA of Ch$ 3,054 million
grew 9.9% aided by an impressive EBITDA margin of 96.0%.

Boulevard Marina Arauco: Another exceptionally profitable property is this
innovative commercial center located in front of Mall Marina Arauco. Total
revenue grew 22.1% to Ch$ 486 million in 3Q 2012 compared to 3Q 2011. EBITDA
generated Ch$ 445 million with an EBITDA margin of 91.5%.

Mall Center Curicó: This shopping center, located south of Santiago, Chile,
contributed income of Ch$ 1,039 million, an increase of 4.2% as compared to 3Q
2011. EBITDA increased 5.2% to Ch$ 990 million with an EBITDA margin of 95.3%.

Arauco Express (Stripcenters Chile): In 3Q 2012, the Parque Arauco subsidiary,
Arauco Express posted an EBITDA of approximately Ch$ 482 million The new
operation is in line with the Company’s strategy to diversify its portfolio of
products.

Peru

Mega Plaza Norte: This shopping center, located in the Peruvian capital of
Lima, reflects the Company’s strategy to target low to middle income areas, a
market that the Company believes to be underserved in the country. The
property added income of Sol$ 16,601 thousand, a 16.9% increase as compared to
the same period of the prior year. The property posted EBITDA of Sol$ 13,080
thousand, a 17.1% improvement from the previous year. Occupancy remained
strong at the shopping center, exceeding 99.0%.

Mega Express Villa: This strip mall property, located in Chorrillos, Peru,
contributed income of Sol$ 835 thousand in 3Q 2012, an increase of 6.6%
year-over-year. The shopping center’s EBITDA increased by 15.5% to Sol$ 603
thousand compared to 3Q 2011. The solid performance demonstrates the demand
for the strip mall model in the Peruvian market as the Company continues to
develop similar properties in partnership with the Wiesse Family.

Larcomar Fashion Center: Located in Lima, the mall contributed income of Sol$
7,907 thousand in 3Q 2012, a 3.0% improvement compared to 3Q 2011. The
center’s EBITDA was Sol$ 4,378, a 1.1% increase compared to 3Q 2011. The
property continues to renovate its facilities and shift the tenant mix to
achieve a higher rent/m^2.

Parque Lambramani: Located in Peru, this mall generated income of Sol$ 2,343
thousand compared to Sol$ 2,440 in 3Q 2011. The lower revenue was a result of
decreased rent/m^2 as the Company is committed to offering competitive rates
to maintain maximum occupancy. Despite the decrease in revenue, EBITDA
improved 133.3% to Sol$ 590 thousand as the property significantly decreased
its cost of sales and SG&A. The Company continues to focus on differentiating
the property from peers by specializing in entertainment and food, enhancing
the customers experience with the property’s unique and award winning
architecture, and attracting additional top line anchor stores.

MegaPlaza Chimbote: This operation, located 400 km from Lima, Peru, opened on
April 24th, 2012. In its first full quarter of operation, the property earned
EBITDA of Sol$ 583 thousand.

Mega Express Villa El Salvador: This operation, located in El Salvador, Peru,
opened on April 12th, 2012. During the properties first full quarter of
operation, it earned EBITDA of Sol$ 370 thousand.

Colombia

Parque Arboleda: This shopping center is located in Pereira, Colombia. The
property utilizes a unique rental structure that is atypical among the
primarily condominium type mall structures in Colombia and has proven a
success to date. For 3Q 2012, Parque Arboleda contributed income of Col$ 3,722
million, a 91.5% increase compared to 3Q 2011. EBITDA improved 35.7% to Col$
3,084 million compared to 3Q 2011. The success of the Company’s first property
in Colombia is reflective of the expectations for Bucaramanga and future
developments in Colombia from the US$ 1 billion investment plan with
Bancolombia.

Outlook

In 2012, EBITDA is expected to grow 11-14% to Ch$ 68,000-70,000, compared to
Ch$ 61,227 million in 2011.

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 30 years, Parque Arauco has developed, operated and managed shopping
centers throughout Chile, where it currently operates 8 properties. In Peru,
the Company has interests in six malls, and Parque Arauco has expanded into
Colombia with the opening of its first shopping center, Parque Arboleda. In
addition, the Company operates 7 strip centers in Chile under the subsidiary,
Arauco Express.

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
                                                                                             
IFRS
Ch$ thousands
                 Quarter Ending September 30,           Year End September 30,
                                                                                             
                 2012          2011          Chg. %     2012           2011           Chg. %
Revenues         24,163,549    21,038,602    14.9%      71,358,880     60,968,846     17.0%
Cost of Sales    (4,609,784)   (3,749,981)   22.9%      (14,657,893)   (11,278,553)   30.0%
Gross Profit     19,553,765    17,288,621    13.1%      56,700,988     49,690,293     14.1%
Administration   (2,568,172)   (2,582,862)   -0.6%      (7,136,728)    (7,466,900)    -4.4%
Expenses
OPERATING        16,985,593    14,705,759    15.5%      49,564,259     42,223,393     17.4%
INCOME
Depreciation &   421,525       610,206       -30.9%     1,344,856      1,772,330      -24.1%
Amortization
EBITDA           17,407,118    15,315,965    13.7%      50,909,115     43,995,723     15.7%
Other Income /   690,710       (92,039)      -          (791,832)      (1,902,795)    -58.4%
Expenses
Financial        2,645,116     798,156       231.4%     6,385,211      2,398,519      166.2%
Income
Financial        (4,898,240)   (4,640,154)   5.6%       (14,901,039)   (11,845,623)   25.8%
Expenses
Foreign
Exchange         53,619        1,144,531     -95.3%     (493,253)      1,071,815      -
Differences
Income (Loss)
for indexed      575,328       (1,562,991)   -          (2,950,844)    (7,366,293)    -59.9%
assets and
liabilities
NON-OPERATING    (933,467)     (4,352,497)   -78.6%     (12,751,757)   (17,644,377)   -27.7%
INCOME
Profit before    16,052,126    10,353,262    55.0%      36,812,502     24,579,016     49.8%
Income Tax
Income Tax       (4,261,442)   (1,294,396)   229.2%     (9,561,029)    (2,910,732)    228.5%
NET PROFIT       11,790,684    9,058,866     30.2%      27,251,473     21,668,284     25.8%
(LOSS)
                                                                                
Attributable
to:
Equity holders   10,752,190    8,424,224     27.6%      24,935,663     19,515,577     27.8%
of the company
Minority         1,038,494     634,642       63.6%      2,315,810      2,152,707      7.6%
interests
NET PROFIT       11,790,684    9,058,866     30.2%      27,251,473     21,668,284     25.8%
(LOSS)
                                                                                             
                                                                                             
Financial and
Operating
Highlights
                 Quarter Ending September 30,           Quarter Ending September 30,
                                                                                             
                 2012          2011          Chg. %     2012           2011           Chg. %
Revenues (Ch$    24,164        21,039        14.9%      71,359         60,969         17.0%
Millions)
EBITDA (Ch$      17,407        15,316        13.7%      50,909         43,996         15.7%
Millions)
EBITDA Margin    72.0%         72.8%         -0.8       71.3%          72.2%          -0.8
%                                            pp                                       pp
Net Income       11,791        9,059         30.2%      27,251         21,668         25.8%
(Ch$ Millions)
Net Income       48.8%         43.1%         5.7 pp     38.2%          35.5%          2.6 pp
Margin %
FFO (Ch$         11,645        10,991        5.9%       31,516         30,566         3.1%
Millions)
FFO Margin %     48.2%         52.2%         -4.0       44.2%          50.1%          -6.0
                                             pp                                       pp
Weighted Avg.
Shares           702.75        622.60        12.9%      702.75         616.03         14.1%
(million)
EPS ($)          16.78         14.55         15.3%      38.78          35.17          10.2%
Stock Price      978.05        851.17        14.9%      978.05         851.17         14.9%
(Ch$)
Daily Traded
Volume (Ch$      886.87        600.46        47.7%      929.39         825.45         12.6%
million)
Total Tenant
Sales (Ch$       294,192       265,726       10.7%      865,460        786,606        10.0%
Millions) ^1
Total GLA (m2)   672,700       599,000       12.3%      672,700        599,000        12.3%
Parque Arauco    456,682       403,332       13.2%      456,682        403,332        13.2%
GLA (m2)
                                                                                             
1. Total Tenant Sales = Sales of Consolidated Assets



Consolidated Balance Sheet                                      
                                                                             
(Ch$ millions)                       September 30,   December 31,
                                    2012            2011           % Change
Assets:
Cash and Cash Equivalents            116,517         136,430        -14.6%
Trade Accounts Receivable & Other    14,735          14,933         -1.3%
Receivables
Other Current Assets                 19,409          22,893         -15.2%
Total Current Assets                 150,661         174,256        -13.5%
Investment Properties                825,811         701,810        17.7%
Other Non-Current Assets             54,865          65,174         -15.8%
Total Non-Current Assets             880,675         766,983        14.8%
Total Assets                         1,031,336       941,239        9.6%
                                                                             
Liabilities & Stockholder's
Equity:
Current Financial Liabilities        34,985          24,339         43.7%
Other Current Liabilities            24,179          35,844         -32.5%
Total Current Liabilities            59,164          60,183         -1.7%
Non-Current Financial Liabilities    330,816         316,713        4.5%
Other Non-Current Liabilities        67,450          60,762         11.0%
Total Non-Current Liabilities        398,266         377,475        5.5%
Total Liabilities                    457,430         437,659        4.5%
                                                                             
                                                                             
Equity
Issued Share Capital                 229,907         229,907        0.0%
Accumulated Earnings (Losses)        252,812         234,807        7.7%
Other Reserves                       (12,611)        (9,948)        26.8%
Equity Attributable to Company       470,107         454,766        3.4%
Shareholders
Minority Interest                    103,800         48,815         112.6%
Total Equity                         573,906         503,581        14.0%
                                                                 
Total Liabilities & Equity           1,031,336       941,239        9.6%



Property
Financial                                                     
Highlights
IFRS
(Ch$
millions)
*(Sol$           Quarter to                        Cumulative to
thousands)
*(Col$           September 30,                     September 30,
millions)
                2012       2011       % Change    2012     2011     %
                                                                     Change
Total
Revenues
Parque Arauco    8,448      8,172      3.4%        16,649   15,872   4.9%
Kennedy
Arauco Maipu     2,267      1,931      17.4%       4,623    3,824    20.9%
(1)
* Mega Plaza     31,943     27,070     18.0%       45,966   39,366   16.8%
Norte
Marina Arauco    3,047      2,875      6.0%        6,257    5,869    6.6%
Boulevard        474        353        34.0%       968      689      40.6%
Marina Arauco
Mall Center      1,024      973        5.2%        2,048    1,925    6.4%
Curico
Plaza El         997        956        4.3%        2,014    1,907    5.6%
Roble
Paseo Arauco     3,239      2,943      10.1%       6,594    5,975    10.3%
Estacion
Arauco San       834        929        -10.2%      1,966    1,924    2.2%
Antonio
* Mega           1,763      1,661      6.2%        2,438    2,174    12.1%
Express Villa
* Larcomar
Fashion          14,885     14,901     -0.1%       21,521   21,908   -1.8%
Center
* Parque         4,645      4,901      -5.2%       7,040    7,511    -6.3%
Lambramani
** Parque        6,963      5,459      27.6%       10,197   7,614    33.9%
Arboleda
                                                                             
Gross Profit
Parque Arauco    8,215      8,088      1.6%        16,178   15,544   4.1%
Kennedy
Arauco Maipu     2,117      1,699      24.6%       4,257    3,304    28.8%
(1)
* Mega Plaza     27,214     23,149     17.6%       39,759   33,985   17.0%
Norte
Marina Arauco    2,948      2,799      5.3%        6,058    5,714    6.0%
Boulevard        456        343        33.2%       935      637      46.7%
Marina Arauco
Mall Center      1,014      953        6.4%        2,029    1,875    8.2%
Curico
Plaza El         922        858        7.5%        1,846    1,753    5.3%
Roble
Paseo Arauco     3,055      2,745      11.3%       6,203    5,657    9.7%
Estacion
Arauco San       730        830        -12.0%      1,714    1,686    1.6%
Antonio
* Mega           1,242      1,026      21.0%       1,828    1,522    20.1%
Express Villa
* Larcomar
Fashion          11,102     10,238     8.4%        16,197   15,423   5.0%
Center
* Parque         2,506      3,371      -25.7%      4,197    5,058    -17.0%
Lambramani
** Parque        6,509      5,078      28.2%       9,612    7,112    35.1%
Arboleda
                                                                             
EBITDA
Parque Arauco    7,405      7,370      0.5%        14,462   14,199   1.9%
Kennedy
Arauco Maipu     1,717      1,356      26.7%       3,436    2,662    29.1%
(1)
* Mega Plaza     24,676     21,781     13.3%       36,903   31,509   17.1%
Norte
Marina Arauco    2,915      2,764      5.5%        6,004    5,649    6.3%
Boulevard        442        339        30.5%       914      630      45.2%
Marina Arauco
Mall Center      984        921        6.9%        1,973    1,792    10.1%
Curico
Plaza El         780        709        10.0%       1,514    1,440    5.1%
Roble
Paseo Arauco     2,500      2,218      12.7%       5,078    4,584    10.8%
Estacion
Arauco San       582        702        -17.1%      1473     1341     9.9%
Antonio
* Mega           1121       958        17.0%       1641     1394     17.7%
Express Villa
* Larcomar
Fashion          8,803      9,236      -4.7%       12,730   13,667   -6.9%
Center
* Parque         1,217      534        127.8%      1,841    1,171    57.3%
Lambramani
** Parque        5,832      4,056      43.8%       8,738    5,698    53.4%
Arboleda
                                                                             
Gross Margins
Parque Arauco    97%        99%        -1.7%       97%      98%      -0.8%
Kennedy
Arauco Maipu     93%        88%        6.2%        92%      86%      6.6%
(1)
Mega Plaza       85%        86%        -0.4%       86%      86%      0.2%
Norte
Marina Arauco    97%        97%        -0.6%       97%      97%      -0.6%
Boulevard        96%        97%        -0.6%       97%      93%      4.4%
Marina Arauco
Mall Center      99%        98%        1.1%        99%      97%      1.7%
Curico
Plaza El         92%        90%        3.1%        92%      92%      -0.4%
Roble
Paseo Arauco     94%        93%        1.1%        94%      95%      -0.6%
Estacion
Arauco San       88%        89%        -1.9%       87%      88%      -0.6%
Antonio
* Mega           70%        62%        13.9%       75%      70%      7.1%
Express Villa
* Larcomar
Fashion          75%        69%        8.6%        75%      70%      6.9%
Center
* Parque         54%        69%        -21.6%      60%      67%      -11.5%
Lambramani
** Parque        93%        93%        0.5%        94%      93%      0.9%
Arboleda
                                                                             
EBITDA
Margins
Parque Arauco    88%        90%        -2.8%       87%      89%      -2.9%
Kennedy
Arauco Maipu     76%        70%        7.9%        74%      70%      6.8%
(1)
Mega Plaza       77%        80%        -4.0%       80%      80%      0.3%
Norte
Marina Arauco    96%        96%        -0.5%       96%      96%      -0.3%
Boulevard        93%        96%        -2.6%       94%      91%      3.3%
Marina Arauco
Mall Center      96%        95%        1.6%        96%      93%      3.5%
Curico
Plaza El         78%        74%        5.5%        75%      76%      -0.5%
Roble
Paseo Arauco     77%        75%        2.4%        77%      77%      0.4%
Estacion
Arauco San       70%        76%        -7.6%       75%      70%      7.5%
Antonio
* Mega           64%        58%        10.2%       67%      64%      5.0%
Express Villa
* Larcomar
Fashion          59%        62%        -4.6%       59%      62%      -5.2%
Center
* Parque         26%        11%        140.3%      26%      16%      67.8%
Lambramani
** Parque        84%        74%        12.7%       86%      75%      14.5%
Arboleda
                                                                             
                                                                             
(1) Result reflects Q211 results of the affiliated commercial property, Arauco
Express Pajaritos.



Property Operating                                       
Indicators
IFRS
(Ch$)
*(Sol$)                         Cumulative to
**(Col$)                        September 30,
                               2012            2011            % Change
Monthly Revenue per m²
Parque Arauco Kennedy           278,054         270,987         2.6%
Arauco Maipu (1)                124,350         116,170         7.0%
* Mega Plaza Norte              960             906             6.0%
Marina Arauco                   220,431         214,618         2.7%
Boulevard Marina Arauco         93,743          58,803          59.4%
Mall Center Curico              108,638         102,184         6.3%
Plaza El Roble                  195,778         190,280         2.9%
Paseo Arauco Estacion           101,497         93,872          8.1%
Arauco San Antonio              87,261          82,641          5.6%
* Mega Express Villa            539             581             -7.2%
* Larcomar Fashion Center       581             551             5.4%
** Parque Lambramani            393             411             -4.4%
** Parque Arboleda              305,383         305,938         -0.2%
                                                                           
Monthly Rent per m²
Parque Arauco Kennedy           23,131          21,782          6.2%
Arauco Maipu (1)                10,332          8,888           16.2%
* Mega Plaza Norte              50              47              7.8%
Marina Arauco                   15,622          14,744          6.0%
Boulevard Marina Arauco         13,715          9,791           40.1%
Mall Center Curico              6,618           6,210           6.6%
Plaza El Roble                  11,923          11,450          4.1%
Paseo Arauco Estacion           14,236          13,060          9.0%
Arauco San Antonio              8,549           8,415           1.6%
* Mega Express Villa            27              31              -10.9%
* Larcomar Fashion Center       57              58              -2.7%
** Parque Lambramani            26              31              -16.5%
** Parque Arboleda              26,439          28,586          -7.5%
                                                                           
% Occupancy
Parque Arauco Kennedy           99.6%           99.6%           0.0%
Arauco Maipu (1)                96.6%           94.3%           2.5%
Mega Plaza Norte                99.9%           99.5%           0.4%
Marina Arauco                   97.0%           97.8%           -0.8%
Boulevard Marina Arauco         93.0%           95.0%           -2.1%
Mall Center Curico              99.1%           98.9%           0.2%
Plaza El Roble                  98.2%           97.7%           0.5%
Paseo Arauco Estacion           98.8%           96.7%           2.2%
Arauco San Antonio              98.3%           98.6%           -0.3%
Mega Express Villa              97.0%           92.5%           4.9%
Larcomar Fashion Center         88.9%           98.1%           -9.4%
** Parque Lambramani            91.9%           91.8%           0.1%
** Parque Arboleda              93.1%           80.9%           15.1%
                                                                           
                                                                           
(1) Result reflects results of the affiliated commercial property, Arauco
Express Pajaritos.


Contact:

Investor Relations (Chile)
Parque Arauco S.A.
Stefany Salgado
Phone: +562.299.0608
Fax: +562.211.4077
E-mail: ir@parauco.com
or
Investor Relations (International)
Monique Skruzny/ Mark Chisenhall, MBS Value Partners
Phone: +1.212.750.5800
Fax: +1.212.661.2268
E-mail: Mark.Chisenhall@MBSvalue.com