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

Executive summary

• Net income reached R$86.4 million in Q1 2025, 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, reflecting robust demand and effective commercial intelligence.

• LOG initiated its "LOG 2 Milhões" plan, targeting 2 million sq m of GLA by 2028, with 65% of the required volume already secured.

• Dividend distribution of R$20.5 million approved for Q1 2025, with a commitment to distribute 50% of adjusted net income for the year.

• Interim financial statements for Q1 2025 were reviewed with no material misstatements identified by independent auditors, confirming compliance with CPC 21 and IAS 34 standards.

Financial highlights

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

• EBITDA grew 63.2% to R$120.8 million; leasing EBITDA margin at 86.4%.

• Earnings per share increased 96% over the last 12 months; quarterly EPS rose 80.5% to R$0.99.

• Gross profit improved to R$54.0 million; gross margin remained high at 97.6%.

• Changes in the fair value of investment property contributed R$84.1 million to profit.

Outlook and guidance

• Net income guidance for 2025 is R$350–450 million, with quarterly dividend payments and a 50% payout of adjusted net income for the year.

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

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

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

• No material impact from new accounting standards adopted in 2025.