LOG Commercial Properties e Participações (LOGG3) Q1 2026 earnings summary

Executive summary

• Achieved record net income of BRL 134 million in Q1 2026, up 55% year-over-year, with EPS at BRL 1.63.

• Completed the largest asset sale in company history: BRL 1.02 billion for 11 stabilized assets, with 80% proceeds in cash and 20% in fund shares.

• Delivered between 65,500 and 106,000 sq m of GLA in Q1 2026, with two major projects completed and 100% pre-leased, maintaining a vacancy rate of 1.1%.

• Strong demand in the Brazilian Class C/A logistics warehouse market, driven by e-commerce and limited supply, led to high occupancy and rental growth.

• Service revenue grew 93.7% year-over-year, with a margin above 70%.

Financial highlights

• Net rental revenue reached BRL 6.1 million, up 19.4% year-over-year; net revenue from services grew to BRL 8.3 million.

• Rental EBITDA was BRL 56 million (85% margin), up 18% year-over-year; development EBITDA was BRL 129 million, up 76%.

• Consolidated EBITDA reached BRL 185.1 million, up 50% year-over-year; gross margin at 96.3%.

• Net income hit a record BRL 134 million, up 55% year-over-year; EPS at BRL 1.63.

• Capex totaled BRL 185 million, supporting expansion plans.

Outlook and guidance

• Proceeds from the REIT transaction will reduce leverage to 0.3x pro forma, the lowest in 5 years.

• Construction plan targets over 500,000 sq m in 2026, with potential upside for the LOG 2 Million plan.

• Expectation to generate BRL 5 million in additional services revenue from the new fund in the next 12 months.

• Optimism for a record year in asset recycling, with new transactions anticipated.

• Expectation to maintain rental rate growth and high occupancy due to strong market fundamentals.