LOG Commercial Properties e Participações (LOGG3) Q1 2025 earnings summary

Executive summary

• Net income reached BRL 86.4 million in Q1, up 56.2% year-over-year, driven by operational efficiency, asset development, and cost control.

• 102,000 sq m of GLA delivered, all 100% pre-leased to existing clients, with stabilized vacancy at 1.55%, well below the industry average.

• LOG2 million plan underway, targeting 2 million sq m of GLA by 2028, with 65% of the required land bank secured.

• Dividend distribution of BRL 20.5 million approved for Q1, with a commitment to distribute 50% of adjusted net income for 2024 and 2025.

• High-quality investments and mapped demand for 2026-2028, aiming for a yield on cost close to 13%.

Financial highlights

• Net leasing revenue reached BRL 55.3 million, up 2.8% year-over-year; net income rose 56% to BRL 86.4 million.

• Consolidated EBITDA was BRL 120.8 million, up 63% year-over-year; leasing EBITDA margin at 86.4%.

• Earnings per share increased 96% over the last 12 months.

• CAPEX for the quarter was BRL 171.1 million, reflecting expansion efforts.

• Net delinquency at a record low of 0.4%.

Outlook and guidance

• Net income guidance reaffirmed at BRL 350–450 million for 2024 and 2025.

• Intention to distribute dividends equivalent to 50% of full-year adjusted net income, with quarterly payments.

• Expectation of at least 30% quarter-over-quarter revenue growth in Q2 2025, driven by new developments.

• Targeting BRL 1 billion or more in asset sales for 2025, with most transactions expected in the second half.

• Management revenue expected to fully cover SG&A by the end of the current growth cycle.