Good afternoon, ladies and gentlemen, and welcome to HBR Realty's video conference to discuss the results for the first quarter 2025. This video conference is being recorded, and the replay can be accessed at the company's website at www.ri.hbrrealty.com.br. The presentation is also available for download. Please note that all participants will only be watching the video conference during the presentation. Ensuing this, we will start the question and answer session when further instructions will be provided. This video conference will be presented in English with simultaneous translation. To change the audio, please click on the globe icon at the bottom right-hand corner of your Zoom screen. Will be presented in Portuguese with simultaneous translation into English.
To change the audio, you can press the globe icon on the lower right side of your Zoom screen and then choose to enter the Portuguese room. A fter that, you can select mute original audio. Before proceeding, please bear in mind that the forward-looking statements are based on the beliefs and assumptions of HBR Realty's management and the current information available to the company. These statements may involve risks and uncertainties as they relate to future events, and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists should take into account that events related to the macroeconomic environment, the segment per se, and other factors could cause results to differ materially from those expressed in the forward-looking statements.
Present at this conference are Mr. Alexandre Nakano, CEO, Mr. Alexandre Dalpiero , CFO and Investor Relations Director, and Mr. Alexandre Bicudo, COO. I would now like to turn the floor over to Mr. Nakano, who will begin the presentation. You may proceed.
Good afternoon, everybody. Welcome once again to the earnings result presentation for the first quarter 2025. Before going to the key messages, I would like to broadly highlight some points, beginning with our core business verticals. In the mall vertical, the year-on-year growth is very important, especially for the malls that are more mature. Two of them with occupancy of almost 100%, which means that they already require new expansions that we have been implementing lately. I am referring to the Morumbi Shopping. In the HBR 3A Agenda, we report on the development of the platform more than on the operation of the two towers that are presently. It's a personal satisfaction because of the results it delivers. It is a platform with a great deal of focus on energy.
Quarter on quarter, you will observe how thriving the growth of this convenience and proximity power is. In HBR Opportunities, the highlight of the entire presentation is the coming into operation of W Hotel into the platform. Very quickly, W enters with a very robust and important revenue. It also comes in with its expenditures. The revenue will have growth throughout the year, but most of the expenses begin on day one, and this will be reflected in the figures. We are now on slide three with key messages. Net revenue growing 9.5%. Adjusted EBITDA expands 16.1%, increasing the margin 2.7 percentage points. ComVem Patteo Klabin, the great novelty with 7,000 sq m coming in with 91% of an occupancy rate, a true success. This shows once again the power of the platform.
Even with this additional 7,000 sq m, we maintain occupancy at 85%. Growth revenue with a growth of almost 6%, reaching BRL 43 million. Net revenue almost BRL 40 million and NOI with a reduction of 3%. Alexandre Dalpiero will give you more color on that. This effect is explained because it comes in with revenues and expenses. Revenues are growing, and the expenses are integral as of day one. In the HBR Opportunities platform, we have gross revenue of almost BRL 5.5 million and +Box with BRL 1.3 million in gross revenue. We had the inauguration of the second +Box unit near the Piqueri Bridge with 3,200 sq m and the sale of Hilton Garden Inn. In the coming 60 days, we should go on to the final documentation and settlement of the sale.
The Hilton Garden Inn sale is underway, and the conversation with the other understandings that we have mentioned here continue. In the last month, they have become much broader. Obviously, the macro market doesn't allow us to have too many options. We have one or two good conversations in amount that we believe allow us to continue on with the negotiation. We hope that throughout the year, we will be able to consolidate the sale of some of our understandings. Once again, we will offer you more details as we evolve in our conversations. ComVem had the net revenue reaching BRL 5.5 million, a growth of 25%. NOI with an expansion of almost 30%. This is in accordance with our strategy. It's something we expected.
I present this to the market with a great deal of satisfaction because it means that the platform, the ComVem business, has been well accepted by tenant. NOI margin growing 2.8 percentage points, standing at 76.9%. ComVem Patteo Klabin adding 7,000 sq m with a Decathlon store as an anchor, and stores and restaurants on the ground floor, which means that we have reached 50,000 sq m of GLA in operation. Occupancy, two towers occupied with a net revenue of BRL 5.3 million, growth of 1.6% per year. Corporate Paulistano with 13.6 construction progress. In April, the Habite-se for the corporate building enabling us to begin works handed over to Hospital Israelita Albert Einstein, and this should be completed at the end of the second semester. HBR sales reaching BRL 389.7 million, up by 4%.
Rentals, BRL 33.58 million, occupancy rate 92%. We signed what is called Poupatempo, which was inside the mall. We have put it outside with a wall separating them, and we were able to close a lease contract with Riachuelo that will begin the works to become part of the mall. I will give the floor to Bicudo who will speak about the ComVem platform and the malls.
Well, thank you, Nakano. Good afternoon, everybody. As Nakano just mentioned, we had a quarter with very good figures in terms of total sales, BRL 78.6 million, with a growth of 19.6% vis-à-vis the first quarter 2024. Same-store sales are 12%. Regarding rents, BRL 7.6 million of revenues from rentals with a robust growth of 22.4%. Regarding same store, 7.8%. Occupancy is maintained at a level that we deem to be quite satisfactory, 85%. We had several agreements inaugurated since the first quarter of 2024. As a great highlight, the inauguration of ComVem Patteo Klabin with 7,000 sq m on January 27th. We went beyond 50,000 meters in operation of GLA because of this asset.
During that period, we had the signature of 17 contracts, especially for ComVem Pinheiros that will be inaugurated this year and already has a growing occupancy rate. We had something that is perhaps more relevant. 27 stores opened in the quarter. This is one of the most important quarters with almost 7,000 meters of GLA. This is very important for us. We have operations like schools, the restaurant Paparoto Cucina. Therefore, significant movement of inauguration of stores, and we should have the same or similar activity of stores inaugurated during the rest of the year. We go on speaking about the malls. We had a good quarter once again. Total sales, as mentioned by Nakano, coming forward to BRL 400 million, an increase of 4% vis-à-vis last year.
Urupema, same base, growing 26%, showing that there is room for development after the inauguration of the mall. Same store, BRL 356 million. Urupema, once again, with 16% growth in sales. We were impacted by the mismatch of Easter. It went from March to April. So there was this offsetting regarding total rents, 10.9% increase compared to last year, and 18.6% of growth in Olinda. We mentioned the growth of rents during this period. Same store rent, BRL 23 million, a growth of 4.4% vis-à-vis last year with a highlight for Mogi. In Urupema we still have a level of discounts because of its level of maturation. Regarding the general performance, we had net revenue of BRL 16.9 million, a growth of 2.9% vis-à-vis first quarter 2024. I'm sorry, BRL 14.6 million and occupancy rates standing at 92%.
Mogi continues with a very interesting occupancy rate. We have worked incessantly in the lease of the enterprise, and this is gaining thrust. We are also working on developing projects for expansion. This will add an additional 6,000 sq m, and it will become consolidated as a benchmark in the city. In Suzano, an interesting novelty, the signature with Riachuelo, 1,600 sq m, and Riachuelo should inaugurate the store at the end of September. We want Christmas with this operation operating at full steam. We have new operations as well or qualifications at lease that are very interesting. As an example, we will have an expansion of C&A. We have Gelato Borelli and other very important inaugurations. In Olinda, the occupation is 86%. We have a thematic park, Urupema 75% occupancy rate, and we have a food court.
We are reviewing the mix of activities and operations. It is our understanding that we will replace stores that are leaving with others that will allow us to have a better mix. That is what I wanted to present. I will now turn the floor to our CEO.
We are now on slide eight, our HBR 3A corporate platform. I am not going to refer to the highlights. I have already mentioned some of them. I am going to stick to the timeline of our assets. In Pinheiros, the Habite-se license was issued at the end of April. They are beginning the internal works. The forecast is to inaugurate this in one year for the public in general. At the bottom of the building to the left of the picture, we will inaugurate this in September or October. Once again, this faces the street, and it will be launched before the hospital itself. Itaim 2, a building on Santo Amaro with 10,000 sq m. We are holding two conversations for lease for the users. Cotovia on Ibirapuera Avenue, jointly with Cyrela. Well, it is part of ComVem.
We have been working on the lease of two floors, 2,000 sq m each. Carandá, we are conversing with the lease with the user Paulista, 13.6% of advance in the works. There is a conversation ongoing and still very incipient for lease. We are going to see if in the next quarter we can get more traction out of this conversation. Pedroso Alvarenga. This is a project that had the legal approval, but with the change of the master plan, the plot was crippled in terms of usable area. So we had to reapprove the project in Chucri Zaidan in Xovia. This is a project that we are very fond of. We are intending to convert the tower into a residential building. We understand that the corporate mar ket in the region will take five to 10 years to recover prices.
Prices in the sense of paying for the investment. In Chipre, Faria Lima, we are going to speak to the city hall. The price has already been defined, and once again, it is within the terms that we have promised. On the next slide of opportunities, the great highlight is W Hotel inaugurated in December of last year. It is a project that has surprised the owners because of the results. It has invoiced BRL 3.2 million only in accommodation revenue. This hotel has a very strong component of beverages and food, representing 40% of the revenue volume. So it has had very good traction. In the second quarter, the figures will be even better. So you will see how positive the operation of this asset is.
+Box reaching 91% occupancy, a very good one, and it grew 19 percentage points vis-à-vis the first quarter 2024. The revenue growing almost 40%. There is a growth in the occupancy rate, but we are charging more and better within the +Box platform. We have due diligence in the next 40-60 days. We should be able to materialize this sale. For Hilton Garden, I spoke about our coming deliveries. To the top at the right, you see the analysis of evolution of GLA. When it comes to participation of the platforms, we have 95,000 for ComVem, 61% for Triple A, 70,000 for malls, and also 47,000 for opportunities. Each has their own characteristics, and our development is within ComVem and Triple A.
And if you look at the lighter gray columns, you will see which will be the development in the coming years. This has also been designed in the table below. There is a linearity of deliveries. Not everything is concentrated in the same year, and we are thinking of distributing the CapEx to be able to better work with the company cash. I will now give the floor to Dalpiero , who will refer to the financial data for the quarter.
Thank you, Nakano. Once again, I will speak to you about the HBR results. I will speak about the managerial net revenue with an improvement of 9.5% year-on-year, totaling BRL 38.7 million in the first quarter 2025. If we look at the revenues, the increase of 25%, and the opportunity platform with an increase of 19.4% vis-à-vis the first quarter 2024. In opportunity, the highlight is the beginning of operations of W Hotel. We have a higher impact on the revenues, of course, because the hotel is already providing expenditures. When we look at managerial NOI, there is a drop of 3%. Before referring specifically to that drop, I would like to speak about ComVem that has a growth of almost 30% quarter-on-quarter, and a platform with a growth of 5%.
When we look at that minus 3% figure, it is the impact of W Hotel and operational results. As Nakano mentioned at the beginning, we had the soft opening of the hotel, and several of the expenses have become part of our fixed cost, and we have begun using the hotel. So in this first quarter, this impacted the net NOI. If we look at everything without this data, the platform is stable. And in the consolidated view, we had a growth of 6%. Now the hotel is performing well at a greater speed than we had scheduled, and we look upon this with very positive eyes. NOI IFRS, the same drop of 2.6%. On the next slide, we speak about adjusted EBITDA. In the managerial view, the growth was 16.1%, comparing it with the first quarter of 2024.
Now, the positive evaluation is because of the increase of net revenue. But here we also have a reduction of 24.3% in expenses, 9% reduction in professional services, and BRL 0.5 million in PDD. The positive result of EBITDA signals to the fact that the company has a great deal of focus, not only on revenue but also all issues related to costs. The FFO negatively impacted when compared to the first quarter 2024 because of the increase in financial expenses. Net profit also with an impact. We have two events here, the financial results for the period, an offender in this equation, but we also have an accounting impact without a cash effect. We had an impairment that we recognized with an impact on net profits. In the next slide of CapEx and strategic asset sales.
This is our CapEx curve. In the first quarter of 2025, we have a stake of BRL 22 million for HBR. When we compare this with the first quarter of 2024, we had BRL 72 million. So we are showing a reduction in CapEx expenditure. As we have announced and commented and mentioned today, we are looking at project per project in detail to see what we can postpone, and this is a reflection of that. In the sale of asset, once again, we signed a commitment in Rio. We are in the diligence phase. We continue to look at proposals for our assets. Now, the great difference that HBR has is that it owns very good assets. Even with a more difficult macro scenario, we have been able to have positive conversations with possible buyers.
This year we can possibly speak about other transactions. To close this slide, we have an increase in EBITDA, reduction in expenses, and reduction in the speed of expenses. We reaffirm the company's commitment of having discipline regarding these figures to offer more value to the company. In the next slide, we have the managerial debt. Net debt of BRL 1.4 billion, 40% of the net debt over PPI ratio . We have a lengthened indebtedness profile, and we have several different rates. More than 80% of our debt is linked to real estate financing, debts that even in a scenario with an increase in interest rate, we manage to have protection. It's important to highlight our indebtedness profile and our capacity for payment. With this, we conclude the presentation. We can now go on to questions and answers. Thank you.
We will now go on to the question and answer session for investors and analysts. Should you wish to pose a question, please send your question through the Q&A icon at the bottom of the screen and type in your question, giving us your name and company. Questions sent in writing that are not answered during the call will be answered subsequently by the IR team. The first question co mes from Mr. Herman Lee from Bradesco. Good afternoon. Given the number of deliveries of GLA expected for 2025, which will be the increase in revenue for ComVem, there has also been a reduction in margin. Could you explain why the reason for this effect?
Let me begin with ComVem. I cannot tell you how much this will generate in revenue specifically. I'm going to interpret your question differently. What we can say is that quarter on quarter, we have a robust and sustainable evolution in margins and in the results of ComVem. All of us speak about this. We have a mantra for operational efficiency, and I think ComVem reflects this. We have a focus on the brand. We are able to present this in a very interesting way in the new areas where we carry out launches, and we have done other things concomitantly. We have leased it before we opened it. When we truly lease it, we already have revenues. We have occupancy higher than 85% and a continuous reduction of concessions and discounts.
More important than giving you guidance for the 2026 guidance is to explain how we work with the platform to generate consistent results. Now, we spoke about ComVem Giovanni Gronchi that will open before the hospital itself with expressive occupancy rate. This attitude, this commitment, this discipline is what enables us to have results within the platform. When we speak about a reduction of the NOI margin, it was impacted by the HBR Opportunities platform. I mentioned this, and it relates to the W Hotel. With the coming into operation of the hotel, initially, we have fixed costs in the operation and revenues come quite slowly. In January and February, we had Carnival, which is not a strong period for accommodation in São Paulo, and our results show a volume that is higher than what we had expected.
This negative impact will tend to be a one-off item, and in the second and third quarters, we will have an expressive increase in results.
Our next question comes from Mr. Matheus Meloni from Santander. First question, could you give us an update on 3A Pinheiros? How are the works and timeline for delivery and implementation of Hospital Israelita Albert Einstein? Could you give us more details on the ramp-up of W Hotel during the year? How long will it take for the asset to mature and be ready for a possible sale?
Matheus, thank you for the question or questions regarding 3A Pinheiros that I mentioned during the presentation. I will give you more details. The Habite-se came out in April. We delivered it to the Hospital Israelita Albert Einstein. If you drive in front of the building, you will see the plate of Hospital Israelita Albert Einstein. They're mobilizing to enter the building. Now, based on our conversations and based on our interactions, this hospital will inaugurate at the end of the second quarter the coming year. It's a highly complex work as we're dealing with a hospital. About the hotel, the maturation of a hotel, as with shopping malls, is always in the third or fourth year, based on what we can see. Of course, it would be irresponsible to say three months.
But the hotel is doing very well, not only in terms of accommodation, but also in the restaurant and events front. Accommodation, well, the matured price is beginning with BRL 500 per day. We tho ught this would only happen in the second year. If you go in to book the hotel, the price is BRL 500. So the price maturity has been reached, but you can always increase this. Maturation is above expectations. Restaurants, for example, on Friday or Saturday night, if you don't have reservations, you will be turned down because they're not able to observe the number of customers. I do hope, or this is a belief I have, that we will put that asset for sale perhaps in the second semester of 2026 and continue on with what we had projected.
Our next question comes from Andre Santana, an individual person. Can you speak more about this investment? Which assets are being analyzed and which is the timing?
Thank you for the question, Andre. This disinvestment agenda, I always make it clear that HBR works in real estate development, and selling is part of real estate development. We're aw are of that, and we devote a great deal of energy to this thesis. As I said, at the end of the year, the market changed significantly. The buyer or the seller needs to be highly creative. What do we have in our showcase presently? Assets that are mature, that have a good financial equation. Faria Lima has reached maturity. João Moura, the equation is given. We have a long-term contract with Hospital Israelita Albert Einstein. Hilton Garden Inn already had good operational maturity. Self-storage also has very good maturity. We can begin speaking about sale. If everything works well upon maturity, we will sell these in 2026.
These are the enterprises that we believe we can proceed with a sale as Dalpiero mentioned. This facilitates the conversation. Because of the lack of money in the market at present, that money is geared to those who have a good construction, good bricks, and we are in the positive side when it comes to bricks or good construction. The coming quarter, we can give you more details on all of these assets. Thank you.
Our next question comes from Mr. Antonio Pascale. Regarding the sale of assets, do you feel that the scenario is somewhat more favorable? Are there assets under more advanced negotiations? If affirmative, could you share with us which are these assets too? Regarding ComVem and HBR Malls, could you give us mo re color in terms of what we can expect in terms of same-store sales and same-store rents? Also, give us details on the assets.
Thank you for the question, Mr. Antonio. Regarding the sale of assets, I answered this in the previous question. All are under negotiation. Some at more advanced stages than others. Regarding the second question, I will ask Dalpiero to answer.
In terms of what we can expect in terms of same-store sale and same-store rents for coming periods, I cannot offer any type of guidance. But when we look at the platform of ComVem and the HBR Malls, we see that they are going in the right direction. In HBR Malls, we will have consistent results. There was a mismatch in Easter this year. This impacted the same-store sales number. We are normalizing this in the second quarter. When we speak about rent, there are interesting outlooks. The assets, most of them are dominating in their regions. We capture value in rents throughout the year. A question that could be a variable of this is the economic scenario vis-a-vis the impact on the retail sector.
There are other builders working with retail, and we have not seen a loss of impulse related to that. What we are looking at are the sale and rent metrics being positive until the end of the year.
Our next question comes from Mr. Matheus Soares from Market Makers. There are several questions. If you could comment on efficiency gains for SG&A, if we can expect new gains going forward, and which will be the improvement of capital that will come from within the company, which is the term to decrease the growth of net debt or to decrease the amount of debt.
Thank you for the questions. It is important to speak about these points. We mentioned the comparison with the first quarter of 2024, but we already have substantial gains in the new enterprises, and we began to make adjustments at the end of the year and they will appear during this year without any type of guidance. We do hope to see a reduction of SG&A consistently throughout the quarters.
The second part of the question, how much of the improvements in company capital will come from within the company? Most of the enhancement will come from in-house. Why?
We have looked at the costs. I am referring to operational costs and fixed expenses, SG&A, but we have also looked at the capital recycling, which will realign our capital structure. We look at project by project, as Nakano mentioned. We have projects where we see the possibility of withdrawing, of discontinuing, or postponing. This means we have a re-adaptation of our CapEx quarter-on-quarter, and we are quite mature in terms of this. We are putting order in the house basically, and businesses do not happen overnight. We carry out these adjustments throughout the year, and the term for the reissuance of net debt depends on the recycling of assets. When our asset recycling gains force, we will see an expressive reduction in our leverage. Everything is part of our working strategy.
We know that the reduction of leverage and net debt will come from all of this, but we never allow operational efficiency to become a secondary issue. We have a focus on all of these simultaneously.
The question and answer session ends here. We would like to return the floor to Mr. Alexandre Nakano, CEO, for the closing remarks.
Thank you, and allow me to carry out a very quick wrap-up of the call. You were able to see that the operational results are materializing. This change is a reflection of what we already know about our potential, the potential of our enterprises and our rentals. They are in line with our in-house planning and all anchored to the ComVem. We understand that ComVem is gaining ever more relevance in the company as part of the HBR 3A platform. It is an enormous satisfaction to go through the building and see the placard of the Hospital Israelita Albert Einstein. This was a true achievement, and we are very happy to see that we were chosen to have one of the best hospitals as part of our group, and to carry out that social function in our enterprise.
In the recycling agenda, the Hilton Garden Inn is under sale and our brickwork, which is very good. We are conversing about this. We hope that in the coming months, we can offer you good news. Our leverage level, it is always on our radar. The cash flow of the company is also very important. We are going to pursue with our development agenda with enormous responsibility when planning our growth. We know when to postpone, when not to postpone, when to speed up a sale. We control this very carefully when it comes to recycling and deleveraging our business. I am not trying to be a moralist. It is not looking only at the rents. We work with real estate as a whole, the acquisition of land, all the way to the sale.
Our purpose is to deliver responsibility and excellence at all stages of this real estate journey. We are with the first tranche, which is attraction for rentals and sales. I would like to thank all of you for your attendance, and I wish you a very happy Mother's Day.
The HBR Realty video conference ends here. We would like to thank all of you for your attendance. Have a very good day.