LOG Commercial Properties e Participações (LOGG3) Q4 2025 earnings summary

Executive summary

• Achieved record operational and financial results in 2025, driven by strong demand for logistics warehouses, operational excellence, and a stabilized vacancy rate at 0.81%.

• Delivered 287,000 sqm of GLA in 2025, with a yield on cost of 14% and a robust pipeline of 623,000 sqm under construction across 11 states.

• Announced a BRL 1.5 billion transaction to create a new investment vehicle for 12 operational assets, unlocking capital for 2026 growth and marking the largest deal in company history.

• Service revenue expanded by 47% year-over-year, with asset management under LOG ADM growing 45% and high client satisfaction (NPS 79%).

• Maintained strong capital allocation, paying BRL 985 million in dividends and share buybacks, and included in the IDIV index for dividend excellence.

Financial highlights

• Net revenue from leasing grew 16% year-over-year in Q4 to BRL 65.2 million; full-year leasing revenue reached BRL 248.8 million, up 13.2%.

• Leasing EBITDA for Q4 was BRL 55.7 million; full-year leasing EBITDA was BRL 213.8 million, up 19.5% year-over-year.

• Consolidated EBITDA reached a record BRL 602.1 million, a 22% increase from 2024.

• Net income for 2025 was BRL 363.5 million, up 5.5% year-over-year; profit per share was BRL 4.06.

• Net default rate reached a low of 0.52%.

Outlook and guidance

• Strong pipeline with 15 projects under construction and significant pre-leasing, supporting future delivery volumes.

• Guidance for continued above-inflation rent increases and further contract reviews to close pricing gaps.

• Plans to double service revenues in coming years, leveraging high-margin service offerings and asset management.

• Focus on maintaining low leverage, targeting net debt/EBITDA below 1x, and continuing asset recycling and dividend payments.

• Service platform anticipated to become a key asset-light growth driver.