LOG Commercial Properties e Participações (LOGG3) Q3 2026 earnings summary

Executive summary

• Record Q3 gross absorption reached 494.6k sq m, about 30% of national absorption; 9M absorption was 789k sq m, exceeding the prior annual record.

• Pre-leasing totaled 488k sq m across 14 projects and 11 cities at R$28.63/sq m and a record 13.8% Yield on Cost.

• Net income rose 9.2% YoY to R$121.6m in Q3 and 10.4% to R$314.3m in 9M, despite lower average GLA following asset recycling.

Financial highlights

• Q3 net revenue was R$57.7m, down 13.5% YoY; 9M revenue rose 3.4% to R$189.8m despite average GLA declines of 28.5% and 16.0%, respectively.

• Q3 EBITDA was R$179.1m, down 7.1% YoY; 9M EBITDA was R$444.0m, down 2.2%.

• Q3 net income was R$121.6m, up 9.2% YoY; 9M net income rose 10.4% to R$314.3m. EPS was R$1.39 in Q3 and R$3.60 in 9M.

• Services revenue rose 48.7% to R$9.1m in Q3 and 65.2% to R$25.0m in 9M.

• Q3 operating expenses fell 3.2% to R$15m; the negative financial result improved 17.3% to R$48.8m, driven by lower financing costs.

Outlook and guidance

• About 77% of GLA scheduled for delivery by end-2027 was already pre-leased; management expects the 13.8% pre-lease Yield on Cost to remain sustainable through 2027.

• Management expects construction costs not to exceed INCC adjustments; all pre-leasing contracts included inflation-linked rent correction, 90% by INCC and 10% by IPCA.

• Current asking rents imply 10.9% potential upside to average rent; further lease renegotiation phases are expected to begin in 2027 and 2028.

• Development plans remain unchanged; management cited strong regional returns and demand, with the Northeast expected to represent 40% of the midterm pipeline.