HBR Realty Empreendimentos Imobiliários (HBRE3) Q3 2025 earnings summary

Executive summary

• Managerial net revenue rose 31.4% YoY to R$50.0m, led by Opportunities, ComVem and Malls; IFRS net revenue increased 52.0% to R$63.2m.

• Adjusted managerial EBITDA reached R$22.1m, up 6.6% YoY; adjusted IFRS EBITDA was R$25.1m, up 8.8%.

• R$957m of asset sales were announced or completed YTD, with proceeds directed to deleveraging and new projects.

• Higher financial expenses and W Hotel ramp-up costs weighed on net results and FFO.

Financial highlights

• Managerial gross revenue was R$55.1m (+30.5% YoY) and net revenue R$50.0m (+31.4%); IFRS gross and net revenue were R$69.8m (+53.8%) and R$63.2m (+52.0%).

• Managerial NOI rose 3.8% to R$31.7m, with a 63.3% margin; IFRS gross profit was R$34.8m, up 4.2%.

• Adjusted managerial EBITDA was R$22.1m (+6.6%), with a 44.1% margin; adjusted IFRS EBITDA was R$25.1m (+8.8%), with a 39.7% margin.

• Managerial net loss widened to R$30.0m from R$17.3m; IFRS net loss was R$28.6m. Adjusted FFO was negative R$26.2m.

• SG&A and taxes were R$11.2m, flat YoY; 9M SG&A declined 7.8%, and the managerial SG&A/net revenue ratio reached 20.9%.

Outlook and guidance

• Asset-sale pipeline is expected to reduce debt by R$432m as transactions close; proceeds are also intended to reinforce cash and support new projects.

• Six assets under development are expected to be delivered between 2026 and 2028; project pipeline and CapEx are under review to manage leverage.

• New-development CapEx is estimated at R$844m through 2031, including R$704m attributable to the portfolio.

• Mogi Shopping expansion is expected in H2 2026 and Suzano expansion in late 2026 or early 2027; Itaim Bibi 2 delivery is expected in March or April.