Earnings release
Page 1
Earnings Release 2Q25 LOG Commercial Properties e Participações S.A. (“Company” or “LOG”) (“B3”), one of the largest developers and lessors of class A logistics warehouses in Brazil, announces its results for the first quarter of 2025. All numbers are presented and compared to the same period of the previous year, except when specified, and have been rounded to the nearest thousand. When compared to financial statements, they may present discrepancies due to decimal places
Page 2
2 MANAGEMENT COMMENTS Strategic Asset Sales and Disciplined Capital Allocation LOG continued to advance its portfolio monetization strategy, recently announcing asset sales totaling R$ 425 million, with a consolidated gross margin of 31.5%. These transactions reaffirm the Company’s disciplined approach to executing its divestment plan and its ability to unlock value even amid tighter liquidity conditions. The Company remains committed to disciplined capital allocation, seeking to balance investments in new developments with cash flow from asset sales (the primary source of funding in the current growth cycle). in line with its conservative strategy, LOG adjusted its development pace during the first half of 2025, delivering 121,000 sqm of GLA, compared to 207,000 sqm in the same period last year. In the second half of this year, supported by the inflow of proceeds from the announced asset sales, LOG will resume the pace of development required to ensure the execution of the Log 2 Million Plan — a robust pipeline of high-quality projects with strong return potential. Strong Market Dynamics and Repricing Opportunity LOG has consistently reported an increase in demand for logistics warehouses. In light of this strong market demand, lease contract values have risen significantly in recent months. As a result, a natural gap has emerged between older leases and current market prices. In this context, the Company has initiated a careful process of renegotiating contracts that are currently below market rates. The goal is to correct distortions, always based on solid data and transparent dialogue with tenants. For the first phase, 51 clients were selected, totaling 237,000 sqm of GLA currently under negotiation. If all ongoing negotiations are concluded under the proposed terms, the average lease price for this group will increase by 41% , rising from R$ 17.19/sqm to R$ 24.28/sqm. On a consolidated basis, the full implementation of the first -phase renegotiations, as proposed, would represent a 7% increase in LOG’s overall average ticket. Average Lease Ticket: Deliveries vs. Portfolio Phase 1: Potential Adjustment of LOG’s Average Ticket GLA Produced
Page 3
3 More than a one -off adjustment, this initiative reflects a structural strategy that will be gradually extended to the remaining portfolio through new phases of renegotiation. The goal is to promote convergence between contracted and market lease prices, sustainably driving asset appreciation and the Company’s long-term profitability. Scaling Revenue Through Services LOG advanced in the expansion of Log ADM, its business unit dedicated to the management of logistics assets. In addition to managing its own developments and assets already sold, the Company also began managing third -party properties, reaching 2.4 million sqm of GLA under management — a 43.3% increase over the past 12 months. This strategy enhances capital allocation efficiency by enabling revenue growth without additional capital commitments. In 2Q25, net revenue from asset management grew by 29% compared to 2Q24 , representing 36% of general and administrative expenses (SG&A). By the end of the Log 2 Million plan, with a stabilized portfolio, this revenue is expected to fully cover SG&A. At the same time, LOG has been expanding its portfolio of complementary services with the goal of further monetizing its asset base. This expansion includes solutions that go beyond traditional property management, adding value for end clients and creating new monetization avenues. The diversification of services reinforces LOG’s position as an integrated platform, capable of delivering operational efficiency and comprehensive solutions within the logistics environment. Progress of the LOG 2 Million Plan This quarter, the Company delivered 41,000 sqm of GLA at Log João Pessoa, with an average lease ticket of R$ 24.51, resulting in a Yield on Cost (YoC) of 14.1% , reinforcing the quality of the new project pipeline in the current growth cycle. Year -to-date, 143,000 sqm of GLA have already been delivered, with an additional 336,000 sqm under construction. The Company’s total portfolio reached 1.06 million sqm at the end of the period. LOG continues to demonstrate agility and efficiency in structuring new projects, having accumulated 513,000 sqm of approved GLA to date, reflecting its strong execution capabilities and the robustness of its development pipeline. The secured landbank totals 915,000 sqm of potential GLA. Considering projects already delivered, under construction, and approved, the Company has already secured 70% of the total needed to meet its growth plan through 2028. It is worth noting that most of this expansion is being carried out through land swap agreements, which reduce the need for tied-up capital and reinforce the Company’s disciplined approach to resource allocation. Asset Management Net Revenue Progress of the LOG 2 Million Plan 7% 17% 46% 30% Deliveries "LOG 2 MM" Development "LOG 2 MM" Landbank "LOG 2 MM" Remaining 70% secured
Page 4
4 FINANCIAL HIGHLIGHTS In 2Q25, the Company reported net lease revenue of R$ 61.5 million, representing a 15.1% increase compared to the same period of the previous year. EBITDA in 2Q25 reached R$ 140.3 million, totaling R$ 261.1 million in 6M25 — a 21.5% increase compared to 6M24. Lease EBITDA tataled R$ 52.8 million in 2Q25, with an 86% margin, up 18.3% year over year. Net income in 2Q25 was R$ 87.1 million, totaling R$ 173.4 million in 6M25 — a 17.8% increase compared to 6M24. Earnings per Share (EPS) in 2Q25 was R$ 1.00, a 0.9% increase compared to 2Q24. In 6M25, EPS totaled R$ 1.99, up 29.2% versus 6M24. The adjusted net debt to EBITDA ratio stood at 1.7x; considering the announced asset sales, this ratio would be 0.9x, reflecting the Company’s financial discipline. The average lease ticket in 2Q25 was R$ 21.25, an increase of 9.8% compared to R$ 19.53 in 2Q24. IN THOUSAND BRL 2Q25 2Q24 VAR. % 6M 2025 6M 2024 VAR. % Net Revenue 61.468 53.401 15,1% 116.795 107.242 8,9% Cost of services (1.406) (1.296) 8,5% (2.710) (2.748) -1,4% Gross Profit 60.062 52.105 15,3% 114.085 104.494 9,2% Gross Margin 97,7% 97,6% 0,1 p.p. 97,7% 97,4% 0,2 p.p. Operating Expenses (16.103) (62.587) -74,3% (32.336) (78.217) -58,7% Development of Assets 94.326 149.736 -37,0% 174.823 184.016 -5,0% Equity interest 299 271 10,3% 1.043 2.094 -50,2% EBITDA 140.329 140.857 -0,4% 261.098 214.863 21,5% EBITDA Margin 228,3% 263,8% -35,5 p.p. 223,6% 200,4% 23,2 p.p. Financial Result (42.519) (32.455) 31,0% (68.565) (41.578) 64,9% Taxes (8.999) (15.184) -40,7% (15.616) (23.622) -33,9% Net profit 87.066 91.886 -5,2% 173.432 147.187 17,8% Net Margin 141,6% 172,1% -30,4 p.p. 148,5% 137,2% 11,2 p.p. Earnings per Share (EPS) 1,00 0,99 0,9% 1,99 1,54 29,2% Adj. Net Debt/EBITDA 1,7x 1,5x 0,2x 1,7x 1,5x 0,2x Capex 160.289 219.974 -27,1% 332.098 378.082 -12,2% GLA delivered %Log (sqm) 1.060.609 966.191 9,8% 1.060.609 966.191 9,8% Average ticket (BRL/month) 21,25 19,53 8,8% 21,17 20,08 5,5% Stabilized vacancy (%) 0,93% 1,65% -43,6% 0,93% 1,65% -43,6%
Page 5
5 Gross Absorption SQM OF GLA Maintaining a high level of absorption 121.4 LOG FORTALEZA III OPERATIONAL HIGHLIGHTS Deliveries: 41.0 SQM OF GLA A Solid Foundation for Sustainable Development and Expansion in the Brazilian Logistics Market YoC of Deliveries:: 14,1% Demonstration of the Quality of the New Project Pipeline in the Current Growth Cycle Stabilized Vacancy: 0.93% Significantly lower than the industry average of 7,4%
Page 6
6 Financial & Operational Performance
Page 7
7 STRATEGIC PILLARS: THE FOUNDATION FOR THE SUCCESS OF OUR BUSINESS MODEL Strategic Pillars Modular Warehouses The company's role as both a leading lessor and asset developer strengthens its market position through three fundamental pillars: Geographic Diversification, Modular Warehouses, and Integrated Operations. Integrated Operatios Geographic Diversification Modular Warehouses: The ability to accommodate logistics operations of all sizes at various stages of our clients' business cycles, across different sectors, and with high absorption speed. 163 tenants in 216 active contracts Sector concentration below 25% Stabilized vacancy rate of 0,93% Average ticket of R$ 21,25 per sqm of GLA Price pass-through above inflation for the 12th consecutive quarter with SCR of 0.92% Geographic Diversification: Relevant Competitive Advantage in the Sector, with presence across all strategic markets and consistently demanded by its own client base — providing commercial intelligence to accurately define the location and pricing of new assets. 41,006 sqm of GLA delivered 60% pre-leasing of deliveries Gross absorption of 121,400 sqm of GLA Integrated Operatios: LOG boasts a vertically integrated structure, involved in every phase of project development from land identification and acquisition, through warehouse construction, leasing, administration, and management, and even the recycling of selected assets. Lowest national construction cost Standardization of prices across the country Flight to Quality as a growth driver Click here to understand about LOG’s Business Cycle BUSINESS CYCLE
Page 8
8 OPERATIONAL PORTFOLIO Delivery of Stabilized Assets in 2Q25, with 60% Pre-Leasing IN SQM OF GLA Quarter % Total LOG Cuiabá 1Q25 38.643 LOG SJP 1Q25 40.981 LOG São Bernardo G2 1Q25 22.456 Total 1T25 102.081 LOG João Pessoa 2Q25 41.006 Total 2Q25 143.087 IN SQM OF GLA (%LOG) 2Q25 1Q25 2Q24 Delivered 1.060.609 1.025.754 966.191 In construction 229.820 264.657 373.503 Landbank 758.846 631.666 536.098 Total 2.049.274 1.922.076 1.875.792 PERIOD START ADDITION SALES END OCCUPAN- CY STABILIZED VACANCY TOTAL VACANCY BRAZIL VACANCY¹ 2Q24 1.045 59 138 966 97,1% 1,65% 2,89% 9,7% 3Q24 966 115 126 1.007 96,5% 0,44% 3,49% 8,8% 4Q24 1.007 96 98 952 96,7% 0,65% 3,30% 9,2% 1Q25 952 74 - 1.026 97,3% 1,55% 2,73% 8,1% 2Q25 1.026 35 - 1.061 97,4% 0,93% 2,57% 7,4% ¹ Source: Colliers. | ² In 3Q24, the sale of São Bernardo do Campo (52 thousand sqm of GLA) was not included, as the project was sold prior to delivery. Southeast: 56.1% Northeast: 22.4% C. West: 11.4% North: 6.1% South: 4.0% YTD Deliveries Portfolio Representation Delivered by Region (% LOG) Portfolio (in thousand GLA %LOG) Portfolio per Class During the semester, the Company delivered 143,087 sqm of GLA across the states of Mato Grosso, Paraíba, Paraná, and São Paulo.
Page 9
9 INCOME STATEMENT (IS) Company Segmentation Leasing: Leasing of Class A warehouses throughout Brazil, focusing on major metropolitan areas and efficient management of these assets through Log Adm. Development: Asset sales strategy, where the recycling of existing GLA finances new projects. Constant property evaluations ensure continuous growth in results. IS 2Q25 2Q25x2Q24 CONSOLIDATED LEASE DEVELOPMENT CONSOLIDATED LEASE DEVELOPMENT VARIATION Net revenue 61.468 61.468 - 53.401 53.401 - 15,1% Costs of services (1.406) (1.406) - (1.296) (1.296) - 8,5% Gross profit 60.062 60.062 - 52.105 52.105 - 15,3% Gross Margin 97,7% 97,7% - 97,6% 97,6% - 0,1 p.p. Operating expenses 78.222 (7.654) 85.876 87.149 (7.996) 95.145 -10,2% G&A expenses (10.873) (3.881) (6.992) (9.752) (3.465) (6.287) 11,5% Selling expenses (3.019) (2.631) (388) (2.554) (2.301) (253) 18,2% Other income/expenses (467) (250) (217) (48.949) (1.510) (47.439) -99,0% Development of Assets 94.326 - 94.326 149.736 - 149.736 -37,0% D&A (1.745) (892) (853) (1.332) (720) (612) 31,0% Equity interest 299 (34) 333 271 27 244 10,3% EBITDA 140.329 53.266 87.063 140.857 44.857 96.001 -0,4% EBITDA margin 228,3% 86,7% - 263,8% 84,0% - -35,5 p.p. Financial result (42.519) (41.684) (835) (30.271) (24.863) (5.408) 40,5% Fin. Expenses ex. equity swap (70.185) (59.796) (10.389) (59.287) (42.175) (17.112) 18,4% Financial income 27.666 18.112 9.554 29.016 17.312 11.704 -4,7% EBT 96.064 10.690 85.374 109.254 19.274 89.981 -12,1% Taxes (8.999) (4.433) (4.566) (15.184) (2.166) (13.018) -40,7% Current taxes (5.107) (3.963) (1.144) (17.304) (2.817) (14.487) -70,5% Deferred taxes ex. equity swap (3.892) (470) (3.422) 2.120 651 1.469 -283,6% Net income ex. equity swap 87.066 6.257 80.809 94.070 17.108 76.963 -7,4% Net margin ex. equity swap 141,6% 10,2% - 176,2% 32,0% - -34,5 p.p. Fin. Expenses of equity swap - - - (2.184) - (2.184) -100,0% Deferred tax ex. equity swap - - - - - - 0,0% Net income 87.066 6.257 80.809 91.886 17.108 74.779 -5,2% Net margin 141,6% 10,2% - 172,1% 32,0% - -30,4 p.p. IN THOUSAND BRL 2Q25 2Q24 ¹ As of January 1, 2025, the Company updated its methodology for allocating general and administrative (G&A) expenses between the leasing and development segments, in order to better reflect the dynamics of its business.
Page 10
10 REVENUE Net Revenue Growth of R$ 55.3 million in the Quarter IN THOUSAND BRL 2Q25 2Q24 VAR. % 6M 2025 6M 2024 VAR. % Gross Revenue from leases ex. linearization 55.137 46.482 18,6% 104.573 95.634 9,3% Revenue linearization 4.963 5.852 -15,2% 9.584 9.749 -1,7% Gross Revenue from leases 60.100 52.334 14,8% 114.157 105.383 8,3% Leases Taxes (3.307) (2.555) 29,4% (6.337) (5.265) 20,4% Other revenues (Log Adm + Funds assets mgt) 5.351 4.184 27,9% 10.284 8.171 25,9% Taxes of other revenues (676) (562) 20,3% (1.309) (1.047) 25,0% Net Revenue 61.468 53.401 15,1% 116.795 107.242 8,9% Net revenue totaled R$ 61.4 million in the quarter, representing a 15.1% increase compared to the same period of the previous year. Same Client Rent above inflation for the 12th consecutive quarter Potential 18.1% upside in ticket price, based on current requested ticket Same Client Rent¹ Average Ticket Evolution 0.1% 2Q24 1.1% 3Q24 1.2% 4Q24 0.4% 1Q25 0.9% 2Q25 SCR LTV 19.53 2Q24 20.33 3Q24 21.76 4Q24 21.25 25.09 2Q251Q25 21.09 18.1% Average ticket (R$) Average ticket requested (R$) Upside The chart above, showing the evolution of the average ticket price, presents the variation over the past quarters of the portfolio’s average ticket. The indicated upside refers to the average of the asking prices for new contracts. ] ¹ Active clients who have not modified their contract in the last twelve months of each period.
Page 11
11 Increase in Gross Revenue from Asset Management by 40.5% IN THOUSAND BRL 2Q25 2Q24 VAR. % 6M 2025 6M 2024 VAR. % Net Revenue Property Mgt 4.675 3.622 29,1% 8.975 7.124 26,0% Property Management Cost (1.406) (1.296) 8,5% (2.710) (2.748) -1,4% Gross profit Property Mgt 3.269 2.326 40,5% 6.265 4.376 43,2% Property Mgt Gross Margin 69,9% 64,2% 5,7 p.p. 69,8% 61,4% 8,4 p.p. In 2Q25, asset management revenue grew significantly and now represents 3 6% of total SG&A. This is a recurring revenue stream that adds long-term value to the business. By the end of the current growth cycle, with stabilized assets, management revenue is expected to fully cover SG&A expenses — a key milestone in improving operational efficiency. Tenants concentration 5.4 2Q24 5.4 3Q24 5.6 4Q24 5.6 1Q25 6.0 2Q25 6.7% 8.5% 8.9% 8.2% 12.5% Concentração de clientes Average occupied GLA/contract (in thousand sqm of GLA) Share of largest client/gross revenue % Tenants by Sector - % of GLA in Operation 12%3%3%6%15%20%12%4%25% Others Equipment, Tools, and parts Textile Food /Beverages Logistics Pharmaceutical Retail Transportation E-commerce Strong demand allows the Company to report an absorption of 121,400 sqm of GLA in the quarter Gross Absorption by Sector in the Quarter Contract Maturity Schedule 35% 22% 19% 11% 13% E-commerce Logistics / Transport Pharmaceutical Food And Beverage Others 165 170 125 151 477 Until 12 months 13 to 24 months 25 to 36 months 37 to 48 months > 48 months Vencimento por Receita Maturity by sqm of GLA (thousand) The Company serves clients across most sectors of the economy, with no single sector exceeding 25% of the total GLA.
Page 12
12 LOG S. J. PINHAIS OPERATING EXPENSES IN THOUSAND BRL 2Q25 2Q24 VAR. % 6M 2025 6M 2024 VAR. % Gross Profit 60.062 52.105 15,3% 114.085 104.494 9,2% Operating Expenses (15.249) (13.373) 14,0% (30.135) (27.906) 8,0% Selling expenses (1.878) (1.609) 16,7% (3.377) (3.269) 3,3% Vacancy expenses (753) (692) 8,8% (1.526) (1.486) 2,7% G&A expenses (10.873) (9.740) 11,6% (21.746) (20.675) 5,2% D&A (1.745) (1.332) 31,0% (3.486) (2.476) 40,8% Other income/expenses (467) (48.949) -99,0% (1.768) (49.952) -96,5% Development of assets 94.326 149.736 -37,0% 174.823 184.016 -5,0% Equity interest 299 271 10,3% 1.043 2.094 -50,2% EBIT 138.584 139.525 -0,7% 257.612 212.381 21,3% EBITDA IN THOUSAND BRL 2Q25 2Q24 VAR. % 6M 2025 6M 2024 VAR. % EBIT 138.584 139.525 -0,7% 257.612 212.381 21,3% D&A 1.745 1.332 31,0% 3.486 2.476 40,8% Lease Activity 53.266 44.857 18,7% 100.929 90.971 10,9% Development Activity 87.063 96.001 -9,3% 160.169 123.891 29,3% EBITDA 140.329 140.857 -0,4% 261.098 214.863 21,5%
Page 13
13 FINANCIAL RESULT IN THOUSAND BRL 2Q25 2Q24 VAR. % 6M 2025 6M 2024 VAR. % Financial income 27.666 29.016 -4,7% 58.912 59.515 -1,0% Financial expenses (70.185) (61.471) 14,2% (127.477) (101.093) 26,1% Equity Swap - (2.184) -100,0% - (1.311) -100,0% Other financial expenses ex. equity swap (70.185) (59.287) 18,4% (127.477) (99.782) 27,8% Financial Result (42.519) (32.455) 31,0% (68.565) (41.578) 64,9% In 2Q25, Net Financial Result was R$ ( 42.5) million. The variation is mainly attributed to the increase in the CDI rate during the period, which led to higher interest expenses on borrowings. The average monthly CDI in 2Q25 increased by 31.25% compared to the average monthly CDI in 2Q24. TAX AND SOCIAL CONTRIBUTION IN THOUSAND BRL 2Q25 2Q24 VAR. % 6M 2025 6M 2024 VAR. % Current (5.107) (17.304) -70,5% (14.940) (22.114) -32,4% Deferred (3.892) 2.120 -283,6% (676) (1.508) -55,2% Deferred from Operation (473) 11.064 -104,3% 5.743 9.598 -40,2% Deferred from Development (3.419) (8.944) -61,8% (6.419) (11.106) -42,2% Taxes & Social Contribution (8.999) (15.184) -40,7% (15.616) (23.622) -33,9% NET INCOME IN THOUSAND BRL 2Q25 2Q24 VAR. % 6M 2025 6M 2024 VAR. % Lease Activity 6.257 17.108 -63,4% 21.953 34.669 -36,7% Development Activity 80.809 74.779 8,1% 151.478 112.517 34,6% Net Income 87.066 91.886 -5,2% 173.431 147.187 17,8% Net income for 6M25 totaled R$ 173.4 million, representing a 17.8% increase compared to the previous year. This growth was driven by operational efficiency measures and the development of new assets. The Company has issued a Net Income Guidance for 2025 ranging from R$ 350 million to R$ 450 million.
Page 14
14 INDEBTEDNESS Adjusted leverage of only 1.7x IN THOUSAND BRL 2Q25 2Q24 VAR. % Net debt 1.673.723 1.163.722 43,8% Loans and financing 2.370.934 2.053.337 15,5% Cash, cash eq. & marketable securities 697.211 889.615 -21,6% Equity 3.759.744 3.786.682 -0,7% Net debt / Equity 44,5% 30,7% 13,8 p.p. Adjusted net debt 926.426 531.188 74,4% Receivables from asset sales 747.297 632.534 18,1% Adjusted net debt / Equity 24,6% 14,0% 10,6 p.p. Net debt 1.673.723 1.163.722 43,8% LTM EBITDA 539.848 350.715 53,9% (=) Net debt / Equity 3,1x 3,3x -0,2 p.p. Adjusted net debt 926.426 531.188 74,4% LTM EBITDA 539.848 350.715 53,9% Adjusted net debt / LTM EBITDA 1,7x 1,5x 0,2 p.p. Considering the receivables from the already announced asset sales, which totaled R$ 424.6 million, pro forma adjusted net debt would be R$ 502 million. Under this criterion, the leverage ratio would be just 0.9x. 2Q24 3Q24 4Q24 1Q25 2Q25 1.5x 1.1x 0.8x 1.2x 1.7x 2Q25* 0.9x Alavancagem Net Debt/EBITDA LTM Pro Forma R$531 R$442 R$400 R$664 R$926 R$502 2Q24 3Q24 4Q24 1Q25 2Q25 2Q25* Dívida líquida Net debt (thousand) Pro Forma Adjusted Net Debt / LTM EBITDA Adjusted Net Debt *Adjusted net debt includes receivables from asset sales announced in June and July 2025 (R$ 424.6 million).
Page 15
15 CDI+1.80% CDI+1.46% 2Q24 CDI+1.72% CDI+1.38% 3Q24 CDI+1.71% CDI+1.36% 4Q24 CDI+1.55% CDI+1.18% 1Q25 CDI+1.35% CDI+0.98% 2Q25 Custo da dívida Effective cost Contractual cost Effective 12,31% 12,15% 12,85% 14,50% 15,83% 11,97% 11,81% 12,50% 14,13% 15,46% 2Q24 3Q24 4Q24 1Q25 2Q25 Custo da dívida Effective Cost Contractual Cost 45.9% 11.9% 2Q24 43.8% 9.9% 3Q24 47.3% 9.1% 4Q24 43.6% 14.4% 1Q25 51.1% 20.0% 2Q25 LTV Gross LTV Net LTV adj. by receivable of sales Cronograma de amortização 2025 2026 2027 2028 2029 2030 After 2030 207.0 568.3 536.5 259.2 307.4 220.0 272.6 Debt amortization schedule (thousand BRL) LOG continues to actively pursue its debt reprofiling program, focusing on smoothing the amortization schedule, extending liabilities, and reducing spreads. In April, the Company completed a CRI issuance of R$ 300 million. The consolidated effective cost was CDI +1.35%, representing a significant reduction compared to the previous year’s CDI +1.80%. CAPEX Asset Sales and CAPEX Construction Costs Evolution -158 510 504 484 -171-220 -220 -221 1Q24 2Q24 3Q24 4Q24 1Q25 -158 290 284 263 -171 Dívida líquida Capex (R$ MM) Asset sales (R$ MM) 100 86 93 103 105 111 109 106 111 115 120 130 148 162 168 179 185 2015 2016 76 2017 77 2018 81 2019 82 2020 2021 2022 2023 2024 2025 YTD 73 p.p. Boletim Focus Scaled to 100 (LOG) Scaled to 100 (INCC - National cost of construction index) CAPEX totaled R$ 160 million in the quarter. The pace of investment reflects the advancement of the Company’s expansion plan, which will be financed primarily through asset recycling. As shown on the right, LOG’s construction costs have consistently remained well below the IN CC benchmark. Debt Spread Cost of Debt Loan To Value Debt Amortization Schedule
Page 16
16 ACCOUNTS RECEIVABLE Lowest Accumulated Net Delinquency in LOG’s History: Just 0.35% Accounts Receivable IN THOUSAND BRL 2Q25 2Q24 VAR. % Lease of warehouses 68.051 48.683 39,8% Asset sales 747.297 632.534 18,1% Property management 3.043 1.345 126,2% Others 7.961 11.024 -27,8% Accounts Receivable 826.352 693.586 19,1% Net Default Rate Inadimplência Líquida 2Q24 3Q24 4Q24 1Q25 2Q25 0.62% 0.92% 0.57% 0.40% 0.35% LOG Maintains High Cash Flow Predictability, closing the last 12 months with a net delinquency rate of just 0.35%. This performance reflects the high quality of its tenant base and the Company’s rigorous credit risk management. ASSET VALUE Investment Properties (IP) PPI by Category EM R$ MILHARES 2T25 2T24 VAR. % Terrenos 282.279 135.028 109,1% Projetos em desenvolvimento 1.241.776 1.502.463 -17,4% Projetos entregues 3.120.950 2.836.238 10,0% Custo 2.023.608 1.838.008 10,1% Valor justo 1.097.342 998.230 9,9% Propriedades para Investimento 4.645.005 4.473.729 3,8% As of 2Q25, LOG’s Investment Properties reached R$ 4.6 billion.
Page 17
17 NAV IN THOUSAND BRL 2Q25 Investment Properties 4.637.953 Investees 72.505 Assets held for sale 251.549 Market Value of Assets 4.962.007 Net debt (1.673.723) Swaps + land to be paid (284.894) Accounts receivable (sale of assets) 747.297 Cash from Subsidiaries %Log 175 NAV 3.750.862 Qty of ex-Treasury shares (thousand) 86.999 NAV / Share 43,11 Share Price 20,42 Discount for NAV* 53% * Excluding Parque Industrial Betim The Company's NAV per share has a 53%¹ discount compared to the trading value of LOGG3, indicating a strong potential for stock price appreciation in the coming periods. CASH FLOW Managerial Cash Flow Bridge 1Q25 (4) Cash gen. 42 Sales installments 0 Sale of assets 0 Share Buyback 263 Funding and amortization (160) Capex (7) Other 2Q25 565 697 Cash & Equivalents + Securities (R$ milhões) SHAREHOLDING STRUCTURE In October 2024, LOG announced a new Share Buyback Program for treasury holding, cancellation and/or disposal, as well as for use in its Stock Option Plans. The program has a maximum duration of 18 months and allows for the repurchase of up to 4,800,000 sh ares. Under the current program, 1,233,100 shares have been repurchased—approximately 25.7% of the total authorized. QUARTERLY DIVIDEND DISTRIBUTION This quarter, LOG approved the distribution of R$ 20.6 million in dividends, equivalent to 25% of the adjusted net income for the period. Payment will be made on September 11, 2025.
Page 18
18 LOG GOIÂNIA II EXHIBIT: FINANCIAL STATEMENTS Income Statement In thousand BRL 2Q25 2Q24 VAR. % Net revenue 61.468 53.401 15,1% Costs of services provided (1.406) (1.296) 8,5% Gross profit 60.062 52.105 15,3% Operating expenses 78.223 87.149 -10,2% Selling expenses (3.018) (2.566) 17,6% General and administrative expenses (12.618) (11.072) 14,0% Other operating expenses (467) (48.949) -99,0% Development of assets 94.326 149.736 -37,0% Equity interest 299 271 10,3% EBIT 138.584 139.525 -0,7% Financial Result (42.519) (32.455) 31,0% Financial expenses (70.185) (61.471) 14,2% Financial income 27.666 29.016 -4,7% EBT 96.065 107.070 -10,3% Income tax and social contribution (8.999) (15.184) -40,7% Current (5.107) (17.304) -70,5% Deferred (3.892) 2.120 -283,6% Net profit 87.066 91.886 -5,2% Net profit of controlling shareholders 86.960 91.873 -5,3% Net profit of non controlling shareholders 106 13 715,4%
Page 19
19 Balance Sheet In thousand BRL ASSETS 2Q25 2Q24 VAR. % LIABILITIES 2Q25 2Q24 VAR. % Current assets Current liabilities Cash and cash equivalents 280.694 220.181 27,5% Suppliers 47.539 58.232 -18,4% Marketable securities 165.014 433.545 -61,9% Loans and debentures 334.591 277.793 20,4% Inventory 241.745 - 0,0% Derivative instruments - - 0,0% Accounts receivable 510.724 399.026 28,0% Salaries, charges and benefits 17.318 15.713 10,2% Tax to recover 37.275 42.142 -11,5% Taxes and contributions payable 33.242 41.658 -20,2% Derivative instruments - - 0,0% Land payables 78.599 48.077 63,5% Other current assets 25.563 6.246 309,3% Swap 76.162 83.543 -8,8% Total current assets 1.261.015 1.101.140 14,5% Advances from customers 251.595 1.459 17144,3% Dividends payable - - 0,0% Non-current assets held for sale 251.549 - 0,0% Others 49.164 50.554 -2,7% Total current liabilities 888.210 577.029 53,9% Noncurrent assets Noncurrent liabilities Marketable securities 251.503 235.889 6,6% Lease liability 186.999 171.450 9,1% Derivative instruments 82.884 56.094 47,8% Loans and debentures 2.036.343 1.775.544 14,7% Receivables 315.627 294.560 7,2% Derivative instruments 4.174 - 0,0% Credits with related companies - - 0,0% Land payables 37.354 16.626 124,7% Prepaid expenses 13.562 11.744 15,5% Land Swap 92.779 46.676 98,8% Recoverable taxes 34.686 34.643 0,1% Deferred taxes 154.043 137.797 11,8% Deferred Income tax and social contribution 114.024 113.558 0,4% Provision - - 0,0% Others 18.507 23.359 -20,8% Others 7.317 14.049 -47,9% Investment in joint ventures 156.750 154.423 1,5% Total noncurrent liabilities 2.519.009 2.162.142 16,5% Investment property 4.637.953 4.473.728 3,7% Equity VAR. % Property and equipment 15.636 16.066 -2,7% Shareholders of the company 3.740.220 3.775.981 -0,9% Intangible assets 13.267 10.649 24,6% Noncontrolling interests 19.524 10.701 82,5% TOTAL NONCURRENT ASSETS 5.654.399 5.424.713 4,2% TOTAL EQUITY 3.759.744 3.786.682 -0,7% TOTAL ASSETS 7.166.963 6.525.853 9,8% TOTAL LIABILITIES & EQUITY 7.166.963 6.525.853 9,8%
Page 20
20 Cash Flow Statement IN THOUSAND BRL 2Q25 2Q24 VAR. % CASH FLOW FROM OPERATING ACTIVITIES Profit for the period 87.064 91.888 -5,2% Reconciliation of profit to cash generated by op. activities (38.467) (83.134) -53,7% Decrease (increase) in operating assets (27.991) 5.671 -593,6% Increase (decrease) in operating liabilities (18.356) 1.638 -1220,6% Income tax and social contribution paid (6.731) (8.364) -19,5% Net cash generated/used in operating activities (4.481) 7.699 -158,2% CASH FLOW FROM INVESTMENT ACTIVITIES Increase in / acquisition of investments (20) (63) -68,3% Decrease in marketable securities 156.332 218.801 -28,6% Increase in marketable securities (87.685) (464.287) -81,1% Dividends received from subsidiaries 900 750 20,0% Proceeds from sale of subsidiaries/land 41.964 493.200 -91,5% Acquisition of investment properties (158.253) (218.267) -27,5% Others (2.016) (1.644) 22,6% Net cash generated/used in investing activities (48.778) 28.490 -271,2% CASH FLOW FROM FINANCING ACTIVITIES Proceeds from loans, financing and debentures, net 292.229 58.576 398,9% Amortization of loans, financing and debentures (1) (3.473) -100,0% Interest paid (29.440) (8.776) 235,5% Lease payments (224) (325) -31,1% Payment of dividends (20.499) - 0,0% (Payment) receivable from derivative 165 15.365 -98,9% Disposal (acquisition) of treasury shares (343) (71.400) -99,5% Proceeds from the exercise of stock options - - 0,0% Distributions/Investments from noncontrolling shareholders - - 0,0% Net cash generated/used in financing activities 241.887 (10.033) -2510,9% Increase/Decrease in cash and cash equivalents 188.628 26.156 621,2% CASH AND CASH EQUIVALENTS At the beginning of the period 92.066 194.025 -52,5%
Page 21
21 INVESTOR RELATIONS RAFAEL SALIBA CFO & Investor Relations Officer HENRIQUE SCHUFFNER Investor Relations Director IVAN CAMARA Investor Relations Specialist Earnings Release Av. Professor Mário Werneck, 621 10º andar, Estoril, Belo Horizonte - MG ZIP Code 30455-610 ri.logcp.com.br Av. Pres. Juscelino Kubitschek, 1400 9º andar Itaim, São Paulo - SP ZIP Code 04543-000