LOG Commercial Properties e Participações (LOGG3) Q3 2024 earnings summary

Executive summary

• Achieved record asset sales of BRL 1.5 billion in 2024, involving five transactions across eight projects in six states, with 61% received upfront and gross margin of 38%, executed at or above NAV.

• Delivered 254,000 sq m of GLA YTD, with 134,000 sq m in Q3, maintaining a strong delivery pace and a pre-leasing rate of 68%.

• Stabilized vacancy rate reached a historic low of 0.44%, well below the industry average of 9%.

• Share buybacks and cancellation of 14.3 million shares (14% of capital stock) at a >40% discount to NAV per share, enhancing shareholder value.

• NAV per share CAGR of 16.2% since 2020, including dividends.

Financial highlights

• Net rental revenue in Q3 2024 was BRL 56.6 million, up 18% year-over-year despite significant asset sales.

• EBITDA for Q3 2024 reached BRL 136.2 million, a 77% increase year-over-year; 9M24 EBITDA was BRL 351.0 million (+74.1%).

• Net income doubled year-over-year to BRL 97.1 million in Q3 2024; 9M24 net income was BRL 244.3 million (+100.8%).

• Adjusted net debt decreased 16.8% sequentially to BRL 442.1 million; leverage ratio at 1.07x EBITDA.

• Asset management revenue was BRL 4 million, up 78% year-over-year.

Outlook and guidance

• Rental revenue CAGR projected between 20% and 25% through 2028, driven by expansion and asset recycling.

• Plans to recycle 200,000–250,000 sq m of GLA annually to finance growth.

• Targeting delivery of 2.5 million sq m of GLA between 2024 and 2028, with expected gross profit from new developments of BRL 1.8–2.0 billion.

• Pre-lease levels expected to remain high, with at least 70% pre-leased for new deliveries and strong pipeline for 2025.

• Optimism for continued strong demand, robust project delivery, and high yields into 2025.