LOG Commercial Properties e Participações (LOGG3) Q1 2026 earnings summary

Executive summary

• Achieved record net income of R$134.0 million in Q1 2026, up 55.2% year-over-year, with EPS of R$1.63.

• Completed the largest asset sale in company history: R$1.02 billion for 11 stabilized assets, with 80% proceeds in cash and 20% in fund shares.

• Delivered over 100,000 sq m of GLA in Q1 2026, with all new projects 100% pre-leased and vacancy rate at 1.1%.

• Service revenue grew over 93% year-over-year, with a margin above 70%.

• Strong demand in the Brazilian logistics warehouse market, driven by e-commerce and limited supply.

Financial highlights

• Net revenue reached R$66.1 million, up 19.4% year-over-year, with rental revenue at R$61.3 million.

• EBITDA was R$185.1 million, up over 50% year-over-year; lease EBITDA margin at 85%.

• Development EBITDA rose 76% to R$129 million.

• Fair value gains on investment property contributed R$140.7 million.

• Earnings per share increased to R$1.63 basic, up from R$0.99 in Q1 2025.

Outlook and guidance

• Proceeds from the REIT transaction will reduce leverage to 0.3x pro forma, the lowest in 5 years.

• Construction plan targets over 500,000 sq m in 2026, with potential upside for the LOG 2 Million plan.

• Expectation to generate R$5 million in additional services revenue from the new fund in the next 12 months.

• Optimism for a record year in asset recycling, with new transactions anticipated.

• No material impact from new accounting standards anticipated for 2026.