Zona Franca de Iquique S.A

What it is

ZOFRI is a free-trade zone in the coastal port city of Iquique, in the Tarapacá Region of far-northern Chile. It functions as a logistics and retail hub connecting Asian imports to South American markets, managed since 1990 by ZOFRI S.A. under a 40-year state concession, encompassing over 2,000 user companies across walled commercial premises, industrial parks, and a dedicated mall.

Its activities divide into four units — Real Estate Management, Shopping Mall, Logistics Centre, and Chacalluta Industrial Park — with real estate management the biggest earner, focused on leasing land for warehouses and showrooms. By law, ZOFRI transfers the equivalent of 15% of its revenue each year to municipalities in the Tarapacá and Arica y Parinacota regions.

Who owns it

The Chilean state development agency CORFO holds 71.28% of shares, the Chilean Treasury (Fisco) holds 1.40%, and the remaining ~27.3% is in private hands. That means the state controls roughly 72.7% of the company outright; private and institutional investors hold the floating portion.

The company was formally constituted on 26 February 1990 by CORFO and the Fisco as an open joint-stock company, regulated by Chile’s securities supervisor.

Who runs it

In April 2026, shareholders elected a new seven-member board for the 2026–2028 period, composed of Jaime Soto Zura, Claudio Pommiez Ilufi, Freddy Hurtado Cosgrove, Gisela Schäfer Silva, Gina Ocqueteau Tacchini, Jorge Welch Morales, and independent director Paula Ithurbisquy Laporte. The new board brings experience in logistics, foreign trade, and mining, and notably includes three former chief executives of the company.

In June 2026, the new board removed CEO Felipe Albistur along with the heads of Operations and Planning, following a 7.4% drop in first-quarter mall sales. A successor had not been named publicly at the time of publication.

The money, in plain words

ZOFRI keeps about 35 cents of profit from every peso of sales — a net profit margin of 35.0% (our calculation from FY2025 figures), exceptional even by toll-road or port standards. For every peso owners put in, it earns roughly 30 back each year — a return on equity of 30.4% — powered by the near-monopoly economics of being the zone’s sole landlord.

Revenue grew from CLP 48.2bn (~USD 52.7M) in 2023 to CLP 57.0bn (~USD 62.3M) in 2025, a gain of 18.2% over two years (our calculation). Management credits 2025’s 21.6% jump — the largest in five years — partly as a comparison boost after prior weakness, which is why a 7.4% fall in Q1 2026 sales landed hard.

The balance sheet carries no disclosed debt and CLP 44.2bn (~USD 48.3M) in cash — roughly 20% of its entire market value — giving it a fortress-like financial position. At 11.7 times earnings (price-to-earnings ratio of 11.7×), the stock trades at a modest multiple for a high-margin infrastructure asset.

A dividend declared for late 2026 carries a yield of around 7%, well above the industry average of 3.6%.

What it is doing now

The outgoing board had championed early renewal of ZOFRI’s concession, extending it to 2050 under a plan requiring the company to continue transferring 15% of gross revenue to the state, pending approval by an extraordinary shareholder meeting where CORFO holds the majority. Users have warned of rising operating costs and difficulty planning beyond 2030, the current concession expiry year, making the renewal question the single biggest commercial issue hanging over the company.

What to watch

• CEO succession: Three of the company’s most critical management roles — general manager, operations, and planning — were vacated simultaneously on 3 June 2026. Who fills them, and how fast, will determine whether the 2026 sales dip deepens.
• Concession renewal: The current concession expires in 2030; the previous administration pushed hard for an extension to 2050 with a significant investment plan attached. The new board inherits that negotiation with the state.
• Margin sustainability: A 35% net margin depends heavily on occupancy and lease rates inside the walled enclosure; any weakening of tenant demand — or new regional competition — would hit the bottom line quickly.
• CORFO influence: With CORFO holding 71.28%, board composition and strategy ultimately track Chilean government priorities, making political transitions a material risk for minority shareholders.

This is news, not investment advice.