Paz Corp

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What it is

Paz Corp is a Chilean real estate company that builds apartments and houses, as well as offices and commercial properties, in Chile and Peru. It has been listed on the Santiago Stock Exchange under the symbol PAZ since 2006.

In Chile, its portfolio spans the main districts of the Metropolitan Region of Santiago as well as the Fifth Region and the city of Concepción. In Peru, the operation focuses exclusively on apartments in Lima, aimed at middle and upper-middle segments.

Through a subsidiary, it also leases construction machinery; above that, the listed company heads Grupo Paz Corp, which holds operating and investment vehicles including Inversiones Paz Chile, Inversiones Paz Internacional and Inversiones Paz Servicios.

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Who owns it

The controlling group holds 40.37% of Paz Corp in aggregate, led by Inversiones Globus Limitada — which owns 10.47% of total shares — and is itself controlled by Andrés David Paz Daniels with a 95.94% stake in that holding vehicle.

A separate vehicle, Inversiones Bankers Limitada — also linked to Ricardo Paz Daniels — held around 11.49% as of end-2023, though the family has trimmed small parcels since. Beyond the family bloc, insiders in total hold 38.4% and institutions hold 53.1% of the company (EODHD).

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Who runs it

Ariel Magendzo is general manager (CEO), the public face on recent earnings calls and investor meetings. Nicolas Costanzi serves as CFO.

The board was renewed for another three-year term in April 2026, keeping the same composition: Enrique Bone, Teresita González, Patrick Horn, Francisco León, Ricardo Paz, Andrés Paz and Salvador Valdés. The presence of Ricardo and Andrés Paz on the board underlines the family’s continued strategic hand.

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The money, in plain words

Sales in FY2025 (the fiscal year ending December 2025) were CLP 197.0bn (US$217.4m) — up 34.3% on the prior year, driven by higher property transfer volumes in Chile and more projects completing in Peru. That recovery follows two flat years: revenues were barely higher in 2024 than 2023.

From every peso of that revenue, Paz kept about 8.5 cents as net profit — a net margin of 8.5% (our calculation), modest by regional standards and reflecting the capital-heavy, cyclical nature of housing development. Full-year profit reached CLP 16.7bn (US$18.4m), a 20.4% rise over 2024, though it remains below the CLP 19.3bn (US$21 mn) earned in 2023.

For every peso of owners’ equity, the company earns roughly 6.8 cents a year — a return on equity of 6.8% (EODHD), below the 10–12% range a well-run developer might target in a healthy cycle. The company holds CLP 42.5bn (US$46.9m) in cash (our calculation from balance sheet); net debt is not separately broken out in available filings.

At a price-to-earnings ratio of 14×, the market is pricing in a gradual improvement, not a sharp rebound.

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What it is doing now

At its April 2026 shareholder meeting, Paz Corp announced a US$120m investment plan for 2026, up from the US$100m deployed in 2025. Of that, US$80m — two-thirds — goes to Chile, concentrated in projects already under construction rather than new land purchases.

In Q1 2026, profit attributable to owners came to CLP 2.3bn (US$2.5m), up 9% on the same quarter a year earlier, even as revenue fell because no new Chilean projects began transferring titles during the period. Forward-looking sales commitments (promesas) jumped 47.7% versus Q1 2025, suggesting the order pipeline is strengthening ahead of future revenue recognition.

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What to watch

• Mortgage rates in Chile. The Chilean property market showed signs of reactivation in the second half of 2025, supported by a gradual fall in mortgage rates and a government mortgage-rate subsidy. Any reversal would stall the cycle.
• Peru execution. The company is allocating US$40m to Peru in 2026, split between land acquisition (US$12m) and projects under construction (US$28m). Lima is still a small but fast-growing piece of earnings — watch for margin discipline as it scales.
• Debt roll-off vs. new land spend. In Q1 2026, financial liabilities fell by CLP 14.8bn (US$16.4m) as debt tied to completed projects was repaid. The key question is whether management re-levers aggressively for the next development cycle.
• Family stake drift. The founding family has been selling small tranches since 2024. Continued trimming is not alarming at this pace, but a sustained reduction would change the governance signal.

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This is news, not investment advice.