HBR Realty Empreendimentos Imobiliários (HBRE3) Q2 2025 earnings summary

Executive summary

• Net revenue reached a record R$64.0 million in 2Q25, up 60.9% year-over-year, driven by strong growth in Opportunities (notably W Hotel), ComVem, and Malls platforms.

• Gross revenue for 2Q25 was R$70.5 million, up 60.6% year-over-year, with significant contributions from lodging and retail segments.

• Adjusted EBITDA for 2Q25 was R$25.3 million (up 22.2% YoY), with a margin of 39.5%.

• Despite revenue growth, net loss widened to R$33.1 million in 2Q25, mainly due to higher financial expenses from increased leverage and interest rates.

• Operational efficiency improved, with SG&A and taxes reduced by 12.3% for 6M25 despite portfolio expansion.

Financial highlights

• Gross profit for 2Q25 was R$36.2 million, up 14.4% year-over-year; 6M25 gross profit was R$65.9 million, up 6.1%.

• NOI reached R$32.0 million (+11.1% YoY), with ComVem NOI up 70% and Malls NOI up 12.1%.

• Net debt at the end of 2Q25 was R$1,455.1 million, with a Net Debt/Investment Property ratio of 42.2%.

• Financial expenses increased 45.7% in 2Q25 to R$55.2 million, with net financial loss at R$48.6 million.

• IFRS net revenue was R$64.0 million (+60.9% YoY); IFRS EBITDA at R$22.6 million (+27.9% YoY).

Outlook and guidance

• Capex plans are being reassessed, with prioritization and resizing of investments to reduce leverage needs.

• Asset disposals are underway, including a sales agreement for the Hilton Garden Inn and potential divestments in mature assets.

• Several new asset deliveries are scheduled for 2H25 and 2026, supporting future growth.