This year, Log CP () started a plan that aims to build 2 million square meters in logistics warehouses by 2028. Predicting pay $ 4 billion in this project, the company controlled by the Menin family saw the beginning of its endeavor coincide with a complicated macroeconomic scenario, in which high interest rates make the cost of capital.
The conjuncture also affects the active recycling strategy. In recent years, Log CP has been financing its expansion with the sale of warehouses considered non -strategic, for institutional investors and real estate funds. With Selic at the heights, the appetite of these buyers decreased, recognized the company’s CEO, in an interview with Infomoney.
“Real estate funds live a challenging scenario today. They are having difficulty raising new resources to buy real estate, and we have felt it,” said Sergio Fischer. “Even so, times operations with ongoing backgrounds, they did not leave the table completely. […] Our assets are very liquid and we are always accessing several pockets. ”
Last year, Log CP sold 413,000 square meters in logistics warehouses, within this recycling strategy, and raised R $ 1.5 billion to finance its expansion. This year, so far, there has been no new sales, but Fischer says the fast will be broken soon. “There will be a transaction in the first half, for sure,” he said.
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The company does not believe it will be able to overcome the figure with sales of 2024, but hopes to “do at least the capex [investimento] Of the year, ”says Fischer, and raise about $ 1 billion to build the 500,000 square meters of Locable Gross Area (GLA) scheduled for the first year of the“ Log 2 million ”plan. Now, in the first quarter, the company is delivering 103,000 square meters of ABL in Cuiabá (MT), Curitiba (PR) and São José dos Pinhais (PR).
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In the interview with InfomoneySergio Fischer also made an assessment of how high consumption has held a firm demand for logistics warehouses and maintained low default; He explained how a lower upheld with asset selling tends to be reflected in dividends distributed to shareholders; and said the company is willing to “close the torneirinha do capex”To keep the debt on acceptable level. See below the main excerpts:
Infomoney: With the first quarter of 2025 coming to an end, how do you evaluate the start of Log 2 plan in terms of Gross Locable Area (GL)?
Sergio Fischer: It was a very positive beginning of the year. We are in a unique moment in operational terms. The company has built a lot and produced with return. Our work is usually 12 months, but we can lease over this period. When we let go of a new project, we already know which sectors have demand and the prices that [os locatários] They are willing to pay. This allows us to make investment with assertiveness. We are delivering 103,000 square meters of warehouses in the first quarter, with 100% pre-holiday and a very strong return. We have the machine oil to deliver assets and, in the second quarter, we will have more cool things happening, with a very strong pre-location level as well. The closer to the end of the work, the more we can lease.
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In: agony The expected pace for the next deliveries of new warehouses? Is the cost of high capital a challenge for this continuity?
SF: Our big challenge is to continue selling quality assets to finance this growth. We have a conservative stance on the balance. We don’t want to leverage a ceiling. So if sales don’t happen, we’ll hold back the work a little. But this is not the scenario we work with today. The transactions are happening, there are some more mashed, some embryonic, but there are buyer at the table and we will be able to sell, with quality. We are doing the works to deliver, more or less, in line with what we deliver last year [444 mil metros quadrados]. And also prepared to hold investment if you need to. Brazil is a surprise.
IM: On the active sale side, what has been the shed profile that you are undoing?
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SF: Perhaps this is the hardest decision for us. The fiscal aspect is always relevant, how much tax is taken with the eventual sale of an asset. It also has the marketing position of the square and as we understand the dynamics of rents, in the medium and long term, in those locations. We evaluated if the demand is heated, the customer portfolio. But we also look closely at the buyer, because it is common to maintain after-sales asset management. It is an additional revenue that the company makes and also a way to maintain relationship with these customers.
IM: And how is buyers’ appetite with this high interest rate?
SF: Last year we made five transactions, three of them with real estate funds two with institutional investors. The real estate fund today is in the most challenging scenario, having difficulty raising new resources to buy real estate. We have felt it, but still, we have in progress -back operations. They did not leave the table completely. But our asset has liquidity. There are negotiations with real estate funds, institutional investors. We are always accessing several pockets to always have some transaction in progress and continue with our recycling plan. Now, in relation to interest, it is already getting clearer as far as the rate goes and when it will start to fall. So when you have a fall trend, I think we’ll already have this scenario in the second half, it tends to have an improvement.
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IM: This year there was no sale of assets yet…
SF: It hasn’t had it yet, but we made a relevant sale last year that disapproved of the company in a very relevant way. In our last balance, we are related to net debt and EBITDA of 0.8. It is really a comfort to continue with our growth and have time to make a new operation calmly. And there are already things in progress:
IM: These are sales that will be made later this semester or can the conjuncture push the business forward?
SF: There will be a transaction in the first half, for sure.
IM: High pre-location levels, even with complicated macro, points to a heated demand. Is this something to look with caution?
SF: Our main client is e-commerce, a great space demander, which is growing a lot, above the country’s consumption. We have large platforms market place With more than 10 operations with us, this is very common. It has another aspect that is migration to active [galpões] high quality and, in a time of crisis, the customer seeks for operational improvement. He pays more expensive rent, but his occupancy cost is cheaper. The log is very linked to the growth of consumption and we have sectoral diversification. Who is in the weaker sector, returns some shed and we relocate to another. This is natural to the risk dilution of our business. We have all sectors of the economy in our wallets and this makes us be able to maintain a good occupation.
IM: And the concern with customer default?
SF: Historically, our default has always been very close to zero. Our client is usually multinational that needs to be mirrored by Brazil, with operations of different as well. These are AAA companies that go through difficult times without many bumps. So we do not see default growth in this current scenario. But our business model can also very quickly stop any problem we can have with another customer. We took the property back, we reduced operation with it. And often there is another client inside that park wanting to expand or a new entrant, wanting to enter.
IM: With the sale of assets last year, the log CP obtained an excess of capital that was distributed in dividends. How is the dynamics of earnings, knowing that recycling recipes tend to be smaller?
SF: In fact, last year we sold more than we initially planned, as it had demand, good opportunities. We invested a little below $ 1 billion and sell $ 1 and a half billion. With the surplus, we repurchased R $ 313 million in shares, we canceled 15% of the stock base and distributing an additional dividend of R $ 540 million. […] This year we want to do more of the same. We have an open repurchase program and the forecast to do the dividend around 50% [do lucro] throughout the year. There are sales forecasts that we are telling you to happen, but also past sales receipts. We have $ 900 million in receivables to happen throughout this year and next year. So this gives us comfort to have these dividend and investment projections, as some of the resources are guaranteed and will come to us throughout the year.
IM: Do you think of expanding repurchase programs even if it affects the company’s liquidity in the stock market?
SF: We have an open plan to repurchase 5% of capital. If we have a niece of capital, we repurchase, this is how we have done. And if we need to trigger the advice to ask for new repurchase, we are willing to do. It is positive for shareholders today to repurchase and cancel the paper with the discount level we have. We know this has an initial impact on the company’s liquidity, but we are willing to it at first. Then, when you pull the price of paper, it increases. We are working with the head of what is the best for the shareholder.
