HBR Realty Empreendimentos Imobiliários (HBRE3) Q4 2025 earnings summary

Executive summary

• Record Q4 net revenue excluding asset sales was R$61.5 million, up 51.2% YoY; adjusted EBITDA rose 35.5% to R$26.5 million, with a 43.1% margin.

• Asset sales totaled R$449 million in 2025, supporting capital structure optimization and the next development cycle.

• ComVem achieved 86.9% occupancy and 44.1% NOI growth; the W Hotel ramp-up supported 51.4% NOI growth in Opportunities.

• G&A/net revenue reached a record-low 20.7% in Q4, reflecting continued cost discipline.

Financial highlights

• Q4 gross revenue excluding sales was R$69.0 million (+52.3% YoY) and net revenue excluding sales was R$61.5 million (+51.2%); managerial net revenue including asset sales was R$258.9 million (+536.7%).

• Adjusted EBITDA was R$26.5 million (+35.5%), with a 43.1% margin excluding asset sales.

• Q4 managerial NOI excluding asset sales was R$38.4 million (+20.4%); NOI including asset sales was R$84.1 million (+163.4%).

• G&A expenses fell 4.9% in 2025; the Q4 G&A/net revenue ratio was 20.7%, a record low.

• Q4 net income was R$22.8 million (+36.5%, IFRS basis); full-year net income was R$27.5 million, down from R$47.7 million in 2024.

Outlook and guidance

• Six projects are under development, with deliveries scheduled through 2029 and beyond; new-project CAPEX is estimated at R$795 million through 2031, including R$670 million attributable to the company.

• 2026 growth is expected from ComVem, W and 3A; priorities include operational improvements and balancing W’s revenue and expenses.

• ComVem portfolio monetization via an urban income fund is planned, with four negotiations underway and progress targeted in 2H26.

• Faria Lima is expected to return to a structured sale process in 2026; rent under the WeWork agreement is expected to be reflected from Q1 2026.

• Focus remains on deleveraging, selective monetization of mature assets and reinvestment in higher-return projects; dividend distribution of R$120 million was approved.