HBR Realty Empreendimentos Imobiliários (HBRE3) Q1 2026 earnings summary

Executive summary

• Net revenue grew 42.1% year-over-year to R$64.8 million (IFRS), driven by strong performance across all platforms, especially ComVem and the ramp-up of the W Hotel.

• EBITDA more than doubled to R$31.5 million, with a margin of 48.7%, while adjusted EBITDA rose 42.4% to R$28.9 million.

• SG&A to net revenue ratio improved to 16.4%, the lowest on record for the fifth consecutive quarter.

• Net loss narrowed to R$22.0 million from R$27.3 million in 1Q25, despite higher financial expenses due to elevated interest rates.

• Strategic focus remains on asset recycling and debt reduction, with major sales and project deliveries planned for 2026.

Financial highlights

• Gross revenue reached R$72.3 million, up 44.6% year-over-year.

• NOI increased 27.7% to R$37.9 million, with a margin of 58.5%.

• Adjusted FFO grew 40.7% year-over-year, but remained negative due to financial expenses and deferred tax provisions.

• Net debt decreased 13.4% sequentially to R$1.33 billion, reflecting strategic asset sales and liability amortization.

• Financial expenses increased 24.0% to R$53.6 million, mainly due to higher interest rates and new project financing.

Outlook and guidance

• Pipeline of asset sales in 2026 includes Faria Lima, ComVem, and shopping mall stakes, expected to generate over R$1 billion.

• Six projects are under development, scheduled for delivery between 2026 and 2029.

• Capex for new developments is being reassessed in line with market conditions, with R$819.6 million in total projected investments.

• Management expects further improvement in leverage and FFO as asset recycling and debt amortization continue.

• No material impacts from recent tax reforms or new accounting standards are expected.