LOG Commercial Properties e Participações (LOGG3) Q4 2024 earnings summary

Executive summary

• Achieved record asset sales of 413,000 sqm GLA in 2024, totaling BRL 1.5 billion with a 38% gross margin, supporting growth and balance sheet strength.

• Delivered 443,000 sqm of GLA for the year, the highest annual delivery, with 90% pre-leased in Q4 and a stabilized vacancy rate of 0.65%, accounting for 18% of new logistics stock in Brazil.

• Distributed BRL 220 million in dividends and repurchased BRL 313 million in shares at a >40% discount to NAV, reducing leverage from 1.87x to 0.81x.

• NAV per share grew 23% to BRL 48.58; EPS for the year was BRL 3.95, up 106%.

• Launched the LOG 2 Million plan, targeting 2 million sqm GLA deliveries between 2025–2028.

Financial highlights

• Q4 net lease revenue reached BRL 55.9 million, up 18% year-over-year; annual net income was BRL 344.4 million, up 77%.

• Q4 EBITDA was BRL 143 million (+125% YoY); annual EBITDA reached BRL 494 million (+86%).

• Lease EBITDA margin for Q4 was 74%; full-year lease EBITDA margin was 73.6%.

• Adjusted net debt reduced by 19% to BRL 400 million; adjusted net debt/EBITDA improved to 0.81x.

• Capex for 2024 was BRL 819.3 million, up 47.9% year-over-year.

Outlook and guidance

• 2025 net income forecasted between BRL 350 million and BRL 450 million, with quarterly dividends targeting 50% payout of annual net income.

• LOG 2 Million plan targets 2 million sqm of GLA delivered by 2028, maintaining 500,000 sqm per year.

• Rental revenue expected to grow at a 19–25% CAGR during the LOG 2 Million plan (2025–2028).

• Plans to recycle 200,000–250,000 sqm GLA annually to finance expansion.

• Asset recycling and sales expected to remain at similar levels to 2023 and 2024, with flexibility in payment terms and ongoing negotiations.