Net Income of R$ 55.3 mm in 1Q24, a 90.1% Increase YOY and Leases EBITDA Margin of 72.1%
24 Abril 2024 - 9:58PM
Net Income of R$ 55.3 mm in 1Q24, a 90.1% Increase YOY and Leases
EBITDA Margin of 72.1%
Log Commercial Properties (B3: LOGG3), a leading developer of
greenfield assets and lessor of Class A logistics warehouses in
Brazil, is pleased to announce its financial results for the first
quarter.
1Q24 Operational
Highlights:
- Deliveries
totaling 57,000 sqm of GLA were completed with a 100% pre-lease
rate
- Milestone of 2.0
million sqm of GLA historically delivered by the Company
- Gross absorption
of 134,000 sqm of GLA
- Stabilized
vacancy of 0.91%,
- Same Client Rent
of 1,9%, above inflation for the 7th consecutive quarter
1Q24 Financial Highlights:
- Strong EBITDA of
R$ 74.0 million in 1Q24, with a growth of 36.4%
- EBITDA from
leases of R$ 38.8 million and a margin of 72.1% in 1Q24
- Asset recycling
of R$ 1.7 billion in the last 12 months
- Adjusted net
debt reduction of 37.4%, totaling R$ 744.3 million in 1Q24
- Adjusted
leverage of 0.8x considering the asset sales in April
Management Comments
Superior Margins Above 40% in Recycling
Ensure Increasing Value Creation at LOG as a Greenfield Asset
Developer
In 2024, LOG continues to showcase the
attractivity, liquidity, and strong market demand for its assets.
The company's asset recycling strategy highlights its dedication to
sustainable growth and substantial value generation for
shareholders.
On April 19, the sale of the LOG Betim and LOG
Salvador assets was finalized. These properties, with a combined
gross leasable area (GLA) of 138,000 square meters, sold for a
total of R$ 509.7 million, achieving a gross margin of 40.9%.
The transaction with the BTG Pactual Real Estate
Investment Fund - BTLC11 reflects a warming market for real estate
investment funds and the compression of cap rates. This marks the
third deal with BTLC11 since its constitution in May 2023. With
this acquisition, the fund now manages approximately 413,000 square
meters of GLA, amounting to R$ 1.5 billion in assets.
Over the past twelve months, LOG's asset
recycling strategy has amassed over R$ 1.7 billion. These sales,
made at significant margins, demonstrate the company’s capability
to develop high-return greenfield projects.
LOG Salvador Sale: An IRR of 27.3%
Demonstrates Significant Return Potential in Asset
Development
The company has completed the sale of LOG
Salvador, a development comprising 87,600 square meters of GLA
across three phases. The first two phases, which are fully leased,
were delivered in the second and fourth quarters of 2023,
respectively. The third phase is currently under construction and
is scheduled for completion in the second quarter of 2024.
It is important to note that the sale of the
development, including a phase still under construction, over a
29-month period from land acquisition to asset sale, reflects a
significant return, with an IRR of 27.3% after all taxes.
Quarterly Deliveries 100% Pre-Leased
with an Average Rate of R$ 23.63, Reinforces Growing Demand for
LOG's Assets
LOG is advancing towards the completion of the
“Todos por 1.5” plan in 2024, with significant deliveries totaling
57,000 sqm of GLA in Q1 2024, including Log Natal and Log BH. The
average ticket price for these assets reached R$ 23.63 per sqm of
GLA and they were delivered 100% pre-leased.
The high level of pre-leasing, along with the
low stabilized vacancy rate of 0.91%, demonstrates the Company’s
ability to align supply and demand, and confirms the potential of
its business model.
The 13.5% CAGR in NAV Reflects the
Growth Potential and Results Generation for LOG
In 2020, LOG began a significant growth phase
with the launch of the "Todos por 1.5" and "Log 2 Milhões" plans.
The implementation of these strategies is set to sustainably
increase the company's NAV. Starting in 2024, LOG has set a new
production benchmark, aiming to deliver 500,000 square meters of
GLA annually.
This delivery target ensures an increase in the
company’s NAV CAGR, which from December 2019 to March 2024 was
13.5%.
The macroeconomic environment has been favorable
for LOG, particularly due to the opportunities for cap rate
compression. Additionally, LOG has achieved a YoC close to 13%,
which facilitates increased margins in asset recycling.
1Q24 Earnings Call
The Company will hold 1Q24 earnings conference call
tomorrow:
April 25th, 202410 am (Brasília)
/ 9 am (New York) - with simultaneous translationClick here to
access the video conference
For more information, please contact Investor Relations at
ri@logcp.com.br
Belo Horizonte, April 24th, 2024.
André VitóriaCFO and IRO
LOG Commercial ON (BOV:LOGG3)
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