Good afternoon, ladies and gentlemen. Welcome to the conference call of HBR Realty to discuss the earnings of Q1 2024. This conference call is being recorded, and the replay can be accessed at the site of the company, www.ri.hbrrealty.com.br. The presentation is available for download. We inform that all the participants will be in the listen-mode mode during the presentation. Next, we will begin a Q&A session when more instructions will be supplied. Before proceeding, I would like to reinforce that the declarations and perspectives are based on the beliefs and assumptions of the management of HBR Realty and the information currently available to the company. These declarations may involve risks and uncertainties, bearing in mind that they have to do with future events, and therefore depend on circumstances that may or may not occur.
Investors, analysts, and journalists should bear in mind that events related to the macroeconomic environment, the segment, and other factors may result in the results being different from those expressed in the declarations. We have with us in this conference call Mr. Alexandre Nakano, CEO and COO of HBR Realty, Mr. Daniel Viterbo, CFO and Investor Relations Director, and Mrs. Laís Serra, IR Manager of the company. Now I'd like to pass the floor to Mr. Alexandre Nakano, who will begin the presentation. Alexandre, you have the floor.
Thank you. Good afternoon. First of all, I'd like to thank all the investors, the controllers, and all those present at this conference. I am here with Daniel Viterbo plus Laís. Daniel Viterbo, CFO and Investor Relations Director, Laís, Investor Relations Manager. We'd like to talk about the earnings of Q1 2024.
Before going on to the presentation, I'd like to make a comment about the situation. I'd like to see how we are to update you concerning our objectives. We continue strongly in real estate development. We are a new company. Today, we have half of the portfolio under construction and the other half in operation. All these under construction with the schedule we have here. ComVem, for example, we have 41,000 sq m in operation and 72,000 sq m to be delivered. In terms of units, 34 ComVems are ready and 29 ComVems are under development. The towers, we have 17,000 sq m and 85,000 under development. 17,000 in operation, 85,000 under construction.
Two towers in operation, eight towers under construction. This reinforces that we are within a development agenda with strong value creation, and the deliveries will happen during the second semester of 2024, and especially from 2025 onwards.
It's a consequence of real estate development. Some projects we acquire, we buy, and after three, five years, we begin to have revenue from rent due to the real estate cycle that is long. Our land bank, with all these projects that I mentioned, the land bank is very well-positioned in important areas in São Paulo, and I believe that the last great message is that we continue strong in making investments in the sale of assets. In March, we talked about the sale of Hotel Fortaleza, BRL 40 million that we will receive, and we will begin the sales end.
We accepted a proposal to sell Ibis Hotel. We're in the due diligence phase, so we will have this ready in 60 days. Yes, we have focus on this, and we will be very careful, waiting for the right time to add even more value to investors.
Now, going on to slide number three, I will go over the main numbers of the company. Gross revenue: 3% more NOI. NOI here. ComVem had two deliveries, adding here, this amount. In gross revenue, almost BRL 41 million, 3% more, and BRL 35 million in net revenue, growth of 0.3%. NOI, I said BRL 28.5 million. Adjusted EBITDA, growth of 46.3%, margin BRL 16.4 million. Operational highlights. We can look at the first item, total sales of ComVem. If you look at total sales of ComVem, they reached almost 20.8% growth, and same-store sales grew 59%.
This shows clearly that the ComVem platform is giving to the store owners, especially those involved with food, restaurants, an excellent performance in our ComVems. SSR, as a consequence, grew 12%. The malls continue growing, even with two malls that are almost complete, thinking of expansion. We will talk more about this later.
We grew 17.3% year-over-year in total sales. Look at same-store sales, almost 9% growth. In opportunities, we reached an occupancy rate of 80.5%, and revenue almost BRL 4 million. Now, talking about the strategic agenda, as I said in the beginning, we sold the Hotel Fortaleza, BRL 40 million. Physical exchange operation. Another good piece of news: I believe you all know the great location for corporate buildings, which is Faria Lima Avenue. We made an excellent acquisition of probably the last plot of land available on Faria Lima for a corporate boutique development. We bought this land. We are very happy to have found this plot of land and made this acquisition. In terms of new development deliveries, we had the delivery of two Caminhos da Lapa in São Paulo and Joaquim Antunes in Pinheiros, São Paulo, totaling almost 2,000 sq m of GLA in operation.
Going on to slide number five, more details about ComVem. The graph on the left, page five, you will see that we see same-store sales 59%, that I just explained, and total sales grew 21%. This brings a lot of vigor to our strategy to show to the market, to store owners or final clients at the ComVems B2C, that ComVem is a retail platform that is extremely resilient and with a lot of strength for expansion of the operations outside shopping malls in the city of São Paulo. In the middle, we have rent. I would like to say that SSR of -8% due to one rental in Rio de Janeiro. We had to make adjustments in their rent. If we remove this effect, if we purge this effect from this, the growth is 12%, and the total 6% below, a drop of 6%.
The graph on the right, occupancy of ComVems year after it went from 81% to 84% occupancy rate. Highlights: total sales of ComVem almost BRL 66 million, a record for the period. We expanded almost 21% last year, showing the strength of the business model. SSR, as I explained, 12%, and the progress. What helped with the exception of this lessee in Rio. Supplementary rents, the stores are performing in a better way, reaching excellent performance with additional rent, and also even having a negative number, we were able to make 12% progress. Deliveries: as I mentioned, Joaquim Antunes and Caminhos da Lapa will be delivered. This will make us reach 41,000 sq m of GLA, almost 30% more versus 2023. Even with this difference of ABL, we increased occupancy by 3 percentage points. The sales team and the marketing team did an excellent job.
Slide number six, talking about shopping malls. Total sales grew 17%, same-store sales grew 9% in comparison with Q1 2023. Total sales, the graph on the left, all positive, consolidated 17%+ . Same-store sales, positive, consolidated growth of 9%. Rent, total rent, with the exception of Suzano, which was stable, the rest grew, an increase of 5%. Same-store sales, same rent to the same stores, all positive, 4% in comparison with the previous year. Slide number seven, talking about occupancy. Suzano and Mogi, very mature, these two shopping malls. We will begin the expansion. Mogi has made more progress. We always have candidates for new stores. So we have excellent projects for expansion. Olinda, stable, growth of 1%. Urupema shopping mall, drop of 3 percentage points. This is normal in a new shopping mall.
Some store owners that signed the contract but did not open, but it was a good expansion and a good performance. For Q1, occupancy rate: 16 new contracts signed, almost 2,000 sq m of GLA. New contract highlights: Vivara, Leitura, Kings Sneakers, Taco, Now Games and Uau Park. Inaugurations, opening highlights, Tasty Grill in Suzano, an excellent restaurant, 600 sq m. Since the shopping mall is the main leisure location, also Grão Espresso, Freddo, Drogaria São Paulo, and Livraria Leitura. Slide number eight, HBR 3A Towers, 100% occupancy. Faria Lima, 100% occupancy rate, as we said. Looking here at the garages, the building is always full. This means that the corporate tower market is good. Even with the effects of home office, they continue full. HBR 3A Pinheiros on João Moura with Teodoro Sampaio.
At the end of Q1, 80% of construction was completed, and we are making progress to rent the tower. Here, on the graph on the right, you have the eight projects under development. Green is project phase, blue is construction, and red is the Faria Lima plot of land. Paulista here is green. Next month, we will begin the construction. Slide number nine, talking about opportunities. Hilton Garden Inn is a success in terms of performance, occupancy, and RevPAR. Hotel W: 94% construction completed. Gross revenue from accommodation totals BRL 3.6 million. So, gross revenue, BRL 3.6 million. If you look at this, it is in line. There was a drop, but this drop can be explained because the last three months of the year are the best for hotels, and the first three months of the year are the worst for occupancy.
Hilton Garden Inn had a growth of 3.3% year-over-year in the RevPAR, and Ibis Hotel had a slight increase in the average occupancy rate compared to Q1 2023, with 50% occupation. +Box Self-Storage maintains the occupation. Maybe for the fourth or fifth consecutive quarter, we have been increasing the revenue due to repricing and new clients. Next slide, number 10, a summary of the portfolio of the verticals. The graph on the left, you will see in dark blue what is in operation, in gray in development. Especially for HBR 3A, you will see what I said before. We have today a great challenge of development ahead of us. For me, they are very well located. The locations are excellent, so it is a follow- up, and we want them to go into operation within the schedule. We know that after the inauguration, they will have a good performance.
Here, I also show HBR mall opportunities. Here we see the total on the right. We will reach 276,000 sq m of ABL. Below that, the schedule for deliveries. It illustrates what I said in the beginning. As of 2024, but especially 2025, in a linear way, we will have the deliveries of all the projects that are under development. On the right, we see the next deliveries. ComVem Moema in Q1 2024. Klabin, second semester 2024. It is almost ready. W Hotels, as I mentioned, civil work is almost complete, and we hope to inaugurate in the second semester of 2024. The building João Moura, with the HBR 3A tower, HBR Corp Pinheiros, and ComVem, we hope to inaugurate now in the second semester, and the tower we will deliver in the beginning of this second semester.
ComVem 3A Itaim, plus HBR 3A building, we acquired from Cyrela, together with Cotovia, end of 2025, beginning of 2026. Finally, ComVem Paulista, we will begin the construction delivery in the second semester of 2026. Now I would like to pass the floor to my colleague, Daniel Viterbo.
Good afternoon. I would like to talk about the company's numbers. Slide 12, a growth in gross revenue, BRL 40.5 million, and net revenue, BRL 25 million. We can see this. Here, as Nakano already mentioned, we have this discount in a lessee in Rio de Janeiro. When we look at NOI, it is stable. This discount affected NOI and the cost, we had some deliveries. In financial expenses, they are lower than last year.
Many of our debts are linked to the IPCA index. And these months, we had this difference. That is why our financial expenses are lower. We had less cash, less. So the financial result was very similar.
See page 13, look at the managerial net revenue: BRL 35.4 million. Malls made good progress, 13.8% in comparison with Q1 2023. We have stability in HBR 3A. We see this difference here, in platform HBR 3A. In ComVem, we already explained the discount, and opportunities were a little below, but one of our assets in Capuava left. When looking at management NOI, this is the HBR stake. If you compare Q1 2024 with Q1 2023, practically the same. It follows the same trend as net revenue, 100% rented, 100% occupied. The new ones with good occupation and better results. So you can see well the growth in NOI, 9.5%. HBR opportunities are a little lower. Some issues that happened. We sold one of the assets of this platform. Now, slide 14, financial data. So, an adjusted EBITDA of BRL 16.4 million, which includes these non-recurring effects in expenses.
So it is a non-recurring fact, and this was included in the result this month. When we look at FFO, very similar to last year, BRL -14 million . The company is developing, -14.1% . Nakano already mentioned we are a company that is developing. We have many assets to be delivered. They are under construction. In our agenda, these things will balance themselves in the next few years. CapEx slide, the next slide, 15. Here we would like to mention that, when you look at the next five years, there is BRL 920 million, and this is divided according to the schedule, and it depends on whether we will launch new projects at the best time and to have everything rented when it is delivered. The agenda here is part of this funding for the future. The company is working on this agenda. Hotel Fortaleza was sold in March.
In April, we announced that we accepted a proposal for Ibis Hotel. We hope that in two months we will have the deal concluded. Hilton is making progress, and not only on these other assets too, in HBR 3A participation in shopping malls. The company wants to extract the best value for the shareholders. Hotel Fortaleza is a good example. We did not have much liquidity, and it was a very good deal. This is the strategy of the management for the next few years. Now, talking about this scheduled CapEx. In the next nine months, we have CapEx of BRL 160 million. Of course, this is an estimate. Some of these projects may have delays, and totaling BRL 922.9 million. The company will improve operational results, NOI, and recycle assets. We have cash, operational cash. The last slide, managerial indebtedness, slide 16. Here a summary of our debts.
We have long-term debt, and this is not very heavy. We have very good interest rates. We are paying very good interest rates. What we did in Q1, we took out a loan, BRL 100 million. We received BRL 50 million in working capital; the other BRL 50 million. In April, we also received the other BRL 50 million from this operation in March. This is for the company's cash until next year, for us to make these investments until next year and avoid burning assets and making intelligent sales. Gross debt: most of it is in ComVem and malls, and part in HBR 3A. Each one has a schedule: debt with 10 years, 15 years, long-term debt. Well, this is what we had to say in terms of finance. I will pass the floor to Nakano again for comments, and then we will go on to the Q&A session.
Well, I believe we can begin the Q&A session. I will ask that we have the first question.
We will now begin the Q&A session for investors and analysts. If you wish to ask a question, please write your question in Q&A. The first question comes from Bruno Mendonça, Bradesco BBI.
Good afternoon. We have two questions. We would like to know the impact of the leasing spread for ComVem for the next quarters, and recycling, since investment funds have a lot of money.
Bruno, thank you for participating and the question. The positive leasing spread, I say positive, since we are beginning most of the rentals, we count on new leasing spreads that are positive for these rentals. In the next quarters and during the year, we have good chances of increasing the rental rates. The second question concerning recycling, I can give you more details.
The company's desire is very strong to do recycling, to make investments through the sale of assets. What we will do, and we have begun some conversations, is to see how we will offer. We receive proposals. Most of them are speculative. In the next few weeks and months, we will have good news in this area, and the objective is to test the market. I have the same impression as you. The funds have a lot of money. They have an appetite for purchases. So we want to see if this can bring more value to the company.
Our next question comes from Alexandre Assaf, A40 Investment Club .
Good afternoon. The stress in the market in the last few weeks, could it hurt the divestments, the sales?
Alexandre. Daniel Viterbo, thank you for the question. The stress in the market, we always see some stress. We are in Brazil.
We know how things work here. We, HBR, we have good assets. The funds want to buy good assets. They want rental with guaranteed rent, long-term clients, good clients with good ratings. This is what we have. The stress in the market does not hurt sales. We know the value of the assets we have. Once again, what Alexandre just said, the appetite for purchases from investment funds is high. We receive a lot of proposals. Who wants to one asset or another , and sometimes they want to buy groups of assets. I believe the stress in the market did not affect our plans for sales.
The next question from Matheus Soares, Market Makers.
I'd like to understand better: what is the internal rate of return for ComVem? Please give us some color of the strategy in ComVem.
Matheus, Daniel Viterbo, thank you for the question.
We don't give guidance. What I can say is that all the assets, we look at many metrics: return, yield, gains in margin, and we project many scenarios. Things change if we sell now, if we sell later. There are many things that we look at. The strategy of packages. Yes, ComVem is one case where we look at our largest platform in the growth phase, a good thesis. We don't have direct competitors, especially in São Paulo. We have many very good assets, others becoming mature. Once again, we want to extract the best possible value from the assets, and the most logical way would be to package and not sell them one by one. This way, we can extract more value with package deals.
Matheus, supplementing this answer. ComVem, as I showed in the presentation, we have a lot of ComVem to be delivered. The newest ones are becoming mature. The current and the new we can sell in packages because they are not large as a shopping mall, so we sell them in packages. It's better this way.
Our next question comes from Matheus Santander.
Please give us more details about the new project on Faria Lima. What is the timeline? What is the CapEx?
Matheus, thank you. This piece of land, we just acquired it. We made some studies. We're trying to understand the best building that can be built. The timeline: I believe it'll take one year to have the project, and construction in 18- 20 months. It's not very large. Concerning CEPAC, it is not with CEPAC. That's one of the virtues of this plot of land. It is in a location where we can build in excess of the ranges in the city hall.
Our next question comes from Leonardo, [Treasy Research].
Please comment on potential impacts with the new income tax law.
Leonardo, thank you for the question. It's very early to talk about the tax reform law. There are still some discussions based on this law that could affect two of our assets in the new tax reform law, and there's a discussion involving shopping malls with the tax reform from the government. We have talked to many groups to the market. There's no consensus yet. In principle, it seems that taxes will go up, but deductions will also increase. So we're not sure yet the impact of the new tax reform. We're monitoring this. We always do our analysis of the impacts.
Our next question comes from Mr. Julio.
Good afternoon. Do you have acceptable CAP rates? Are the values in line with the quality of your projects when you receive a proposal?
Julio, thank you for your participation and the question. Supplementing my previous answer, we have a lot of volume, but the good proposals; sometimes we have speculative proposals. We are organizing everything to test the market. In the next weeks and months, we will test the market. Concerning CAP rates, it depends on the region, the class of the assets, but we believe the caps now are good for sale to bring value. The values, we believe the distance is smaller between what the market says versus what we believe is the real value. Thank you.
The Q&A session is concluded. We would like to pass the floor to the CEO of the company, Mr. Alexandre Nakano, for his final comments.
I would like to thank once again all those who participated in our call, the shareholders that believe in HBR. Thank you. The controllers of the company, our counselors, the employees that have helped us, thank you. A good afternoon and a good weekend.
The conference call of HBR Realty is concluded. We thank you all for participating, and we wish you a good afternoon.