Good afternoon, ladies and gentlemen. Welcome to the conference call of HBR Realty for the earnings for Q2 2023. This conference call is being recorded and the replay may be accessed at the company's site, www.ri.hbrrealty.com.br. The presentation is also available for download. All the participants are in the listen mode only, and after, we will have the Q&A session when further instructions will be supplied. I would like to reinforce that the declarations are based on beliefs and assumptions of the management of HBR Realty, and based on the current information. They may involve risks and uncertainties, they have to do with future events and 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 bring results that may differ.
We have with us in this conference call Mr. Luiz Henrique Costa, CEO of HBR Realty, Mr. Daniel Viterbo, CFO and Investor Relations Director, and Mr. Mauricio Koakutsu, IR Manager of the company. Mr. Luiz, you have the floor.
Good afternoon. Thank you for participating. We are here, and we will give you the news and the results for Q2 2023. I would like to begin with some positive highlights for our business, talking about the financial performance, and then by platform, by business platform, and also the qualitative aspects. We had a Q2 where we were able to grow the EBITDA revenue by 9%, and we also had a growth in NOI 9.6%, BRL 30.1 million, and BRL 18 million in adjusted EBITDA with 3.1%. Also, more numbers. In ComVem, we had expressive sales, BRL 58 million total sales in ComVem, representing a growth of 61.4%.
Q2 in ComVem, we also had the growth of 55.4% in the increase in net revenue. In shopping malls, HBR Malls, we grew NOI by BRL 13.4 million, which represented a growth of 25.5% in comparison with the same period last year, and growth in total sales 5.7%. In HBR 3A, our corporate towers, we have 100% of the buildings all rented. We have two highlights. One of our hotels, Hilton, in ComVem White on Rebouças Avenue in São Paulo, a growth in the average RevPAR 12.1%. This hotel is performing in a mature way quarter after quarter, bringing us a substantial result. And also Self Storage growing 28.8% the gross revenue. In the developments highlights, ComVem Parque São Paulo, which will be delivered in the second semester of this year, probably in September or October. Today, we have almost 80% of the construction complete.
We have Hotel W in São Paulo, a hotel that will be operated by us as of next year, 86% of construction complete. Later on, we will talk more about it. And our tower, 3A Pinheiros, 46% construction completed and a forecast for delivery in the first semester next year. In terms of quality, we had the inauguration of Patteo Urupema Shopping mall in the city of Mogi das Cruzes. Inauguration on April 18. We participated also in a franchising fair a few weeks ago. We had a stand for ComVem and shopping malls, trying to really show our position in relation to partnership with retail, and we won an award from Abrasce for shopping mall Suzano. Strongly celebrated by us internally. Operational data by platform.
Our ComVem, currently 29 units active, 34,000 sq m, and will grow during the next two and a half years by 35 new assets that are under construction. They will be ready as of the second semester of this year, and will bring another 79,000 sq m for this portfolio. With the current 34,000 sq m, 113,000 sq m in ComVem. We had the growth of 61.4% of total sales, and in using same-store sales, the sales of the same stores, a growth of 14.2% quarter-after-quarter. And same-store rent, our SSR, looking only at rent in the same stores in comparison with last year, we had a growth of 14.3%. Gross growth 29.5%. The occupation of ComVem is in line with the previous quarter, 82.81%, reminding you we had a drop in occupation. This was informed in the Q1 due to a re-qualification of clients, a re-study of clients.
As shown in this quarter, we will recover this occupancy with a better mix. Also in ComVem, a little of the history of Q2 2022 until Q2 this year, showing growth of this ABL, practically 7,000 sq m growth and a disclosure. I will not go into detail each one of them, but these 7,000 sq m are due to the entry of Brascan Open Mall, which was acquired. This mall has 4,200 sq m of ABL. So we will have a growth in ABL in ComVem due to new deliveries that are happening to you, already discussed in the past, but now they are becoming a reality. Now talking about shopping malls. We have the first vision here, Patteo Urupema Shopping mall, inaugurated in April. This is a shopping mall that has 86 stores, 22 kiosks, four movie theaters already operating, 246 parking areas.
The shopping mall is in the downtown area. Due to the beginning of operation, it has a rented area with contract of 84%. You can see this on the graph on the right, shopping mall Patteo Urupema, but store owners are already occupying 64%, and the difference is those that are preparing the stores and should inaugurate them in the next few weeks, and some of them at the end of Q3. Comparing with other shopping malls, more mature shopping malls, we have Mogi and Suzano that are very stable, 97% rented. Patteo Olinda, 86% occupied. And an occupancy rate when you look at shopping mall Patteo Urupema, in total shopping malls, 91% rented, which you can see on the graph.
In terms of shopping malls, total sales by asset, they are detailed on the graph, but the platform as a whole has a growth of 5.7% in sales increase in the period. Looking at same-store sales, the same stores, this number goes to 7.1%, and this shows us the maturity of the operation stores that are with us for a longer period. We follow analyzing shopping malls, and now we look at rent. On the graph on the left, we see the growth of the revenue from rent, 4.8%, and in same-store rent, same stores, this rent going to 7.1% increase, same stores, as a result of the maturity of some operations and the better sale of some of these and higher rent. Now going on to 3A platform, the corporate towers. We talk here about the portfolio with 100% rented.
This picture that you see is a future tower on João Moura Street, our 3A Pinheiros, and today it is 46% complete. It will be exactly as you see it on the picture and should be delivered in the first semester next year, roughly end of first semester, beginning of second semester. We divested Nações Unidas Tower. This was mentioned in the last call due to a revaluation of the project. The project considered many floors, and we understood that the market would not be able to absorb at the speed we wanted. We will maintain the project, but with a mall and ComVem of 3,000 sq m. We also delayed a project on Chucri Zaidan, 3A. We delayed it for 2024, also due to market conditions. It was not the time to launch it.
Pinheiros, I just mentioned, we will talk more about 3A and give you an idea of new projects. Other platforms, opportunities, as we call it, Hotel W, today, one of the main projects of the company. It is a project that deserves all our attention, our focus. It is reaching almost 90% construction complete, and we have a forecast to inaugurate a soft opening at the end of Q1 next year, an inauguration in partnership with Marriott. They validate our execution here, and this soft opening should last 60 days, and then opening inauguration. It will be inaugurated at the end of the first semester or middle of the second semester next year. Self-storage. +Box has had an increase in revenue, as I said previously, a business platform that is mature. It is very feasible.
And Hotel Hilton Garden, with an occupancy above in excess of 80%, and a RevPAR average, RevPAR of 12.1% above the RevPAR of Q2 last year. Gross revenue in Hilton and Ibis that we have in Santana, ComVem Santana, reached BRL 4 million in the quarter. On this slide, practically the last one, we have here ABL by business platform. So in HBR, where we are owners, 282,126 sq m with opportunities, shopping malls, 3A and ComVem together. Most of it under development, a little more than 150,000 sq m already operating.
We have a lot of work ahead of us, a lot of projects to become construction, but as we deliver them and included in the portfolio, the maturity and the strength of the brands will help so that we will have projects that will be better accepted more and more by the market. Before passing the floor to Daniel, I would like to talk about some deliveries of projects that are either almost ready or are beginning, but we want to give you an idea of what we will have in 2024, end of 2023, 2024, 2025, and 2026. These are projects that were in our guidance, and they are now becoming a reality. We see ComVem Limão. It is in the Limão suburb. It will be delivered. It is practically ready.
We are renting 21 stores, 1,380 sq m of ABL. Then ComVem Patteo São Paulo, I just mentioned, on the freeway of Tietê River. Also, ComVem and Self Storage, 3,200 sq m, our second large operation of Self Storage. Total ABL, 5,000 sq m. Then we have two ComVems, one in Vila Madalena suburb, six stores, and one in Joaquim Antunes, three stores, 1,400 sq m. All these four will be delivered this year. On the next page, we have ComVem Moema, six stores, 2,000 sq m to be delivered now in the second semester. ComVem we call ELO Vila Anastácio in Lapa suburb, seven stores, 385 sq m, 100% ready. Sorry, 100% rented. Hotel W São Paulo. Apart from the hotel, we have two restaurants, 9,600 sq m between theater rooms and restaurants. Two restaurants to be managed by us.
ComVem, 3A Pinheiros, 10 corporate floors will be ready first semester next year, 4,000 sq m. 12 stores in the mall, in one ComVem, 3,200 sq m, an ABL of 17,000 sq m. Now we will have more deliveries in the medium term, so we begin to talk about deliveries in 2026. These are projects that will begin. All the project is approved. ComVem 3A Paulista, 3A building, 7,000 sq m and a mall 700 sq m. Total ABL, 9,700 sq m. We will have three projects in partnership with Cyrela, Itaim Cyrela, a ComVem with 1,423 sq m and a 3A, 8,460 sq m with 16 floors. We have a second partnership with Cyrela. Two corporate floors, 4,752 sq m, a mall store, and a ComVem 2,400 sq m. Total 7,157 sq m.
Finally, with Cyrela, we have the last one, three corporate floors on Ascendino Reis, 12 stores in the mall and together with also 3A, a total ABL 7,800 sq m. I wanted to give you an idea of what will happen in the medium term, the deliveries, and here we are rendering account, showing many things that were already mentioned in the past and showing the beauty of these projects. Now, I'd like to pass the floor to Daniel and we will be back for the Q&A session.
Good afternoon. Let's talk about the financial performance in the quarter. The company, as Luiz mentioned, BRL 37 million in net revenue. Reminding you that this includes our participation in all the projects and IFRS that we consolidate 100%, some assets, others not. In our case, we like to look at the managerial part. We had a growth of 9%.
When we look at year to date, BRL 72 million in net revenue, a growth of 7.7% versus Q2 2022. Highlight ComVem, growth of 46.4%. Other platforms also growing in line with what we expected. NOI also grew. We had a growth of 9.6%. Once again, ComVem is a highlight. We have the 3A too with growth, malls with growth. So all the platforms are doing well in accordance with our plans for this year. Some assets with excellent performance like Hilton, +Box Self Storage, and this improves our managerial result, already discounting the cost we have, the vacancy of some of the stores. Year to date, almost BRL 60 million, a growth of 11.4% when I look at the semester of last year. Here, talking about adjusted EBITDA managerial, we look at adjusted EBITDA to exclude non-recurring effects.
We had a sale of an asset, HBR Capuava, in February with a gain in margin. We exclude this from the operational result and we close this. This happened in Q1 2023. In Q2, we closed with BRL 18.4 million, growth of 3% versus last year and year to date, BRL 37 million, a growth of 8.8% versus first semester of last year. Here, I'd like to show FFO. We had a small improvement. We are a company under development.
Although we had an improvement, the financial expenses affected the results, but it is in line with what we planned for the next two years. As we sell assets and deleverage the company, this line will improve. Net profit, like FFO, some adjustments, a little better than last year, but in line with our gross debt BRL 1.1 billion, and we have a better operational result. Here, CapEx and sale of assets.
We have been saying all the calls that it is the company's strategy to sell projects. In February, we sold HBR Capuava, HBR04 Capuava. Part of it was in cash, the other part in 24 installments. This deleveraged the debt. It was rented to Pirelli, and they left, and we studied many projects, and we sold it to a retail supermarket. 3A Nações Unidas in May, Semp Toshiba, we decided to leave because of the high vacancy in the region. It was not favorable. We decided to leave the project, but to stay with the ComVem. We continued to operate the ComVem because we will have residential towers. We communicated this sale, VGV of BRL 84 million. Part of it is in exchange with ComVem and the other financial exchange, and we will receive this in the future. We have today in progress Fortaleza Hotel.
We're at the end of the protocol phase. The buyer will retrofit the building. After the final phase, we will announce the closing of the operation, an estimated VGV between BRL 35 million-BRL 40 million due to the value of the square meter. We have also conversations in progress, Ibis Hotel and Hilton Garden. These are assets of opportunities. We are studying a possible sale. We are talking, we're studying, like other assets that we have in the next few years. This is the company's strategy due to the need for CapEx. Apart from the schedule for deliveries of the next few years, which demand investment, we have in our site, we showed a CapEx plan for the next few years. This sale of assets will take care of our needs. We will try to sell for the best value for the shareholders.
We believe in improvements next year with lower interest rates in Brazil. We have also real estate funds talking to us. We have many good assets. We have real estate funds talking to us, wishing to buy, and people want good assets. We have this. We have good assets. Here, our debt, gross debt, BRL 1.1 billion, very similar to what we had in last year. Cash position goes down and our debt has gone up. When we look at investments, we believe it's comfortable, but financial expenses have hurt the results. When we sell some assets, this debt will drop. Here, we close the quarter with BRL 200 million in cash. Our debt schedule has a long duration. We have a soft amortization schedule, a lot of debts for 20 years. This is relevant for us. We have this agenda for strategic sales according to the company's plans.
In the next few years, we will sell assets. This is part of our strategic plan, and this will happen during this year and during the next few years. During this year, some assets that I mentioned and the sale is in progress. Some already advanced. During the next few years, other assets, we have delivery of relevant assets in the next few years, and others that are mature, and we will decide the best to bring value to the company. This is what we had to say in a nutshell, in summary. The highlight is that the operation is better, positive numbers. Now I would like to pass the floor to Luiz for the final comments.
I believe we are available to answer questions, and later we can close. Thank you.
We would like to begin the Q&A session for investors and analysts. If you wish to ask a question, please give us your name and company or MZiQ. Please wait while we collect the questions. Our first question, Matheus Meloni, Santander. Mr. Matheus.
Good afternoon. I would like to understand Patteo Urupema project, the shopping mall. Is it ComVem? Was it transformed into shopping mall? Will this happen in other? Will you convert other assets from mall to ComVem? Are you talking to real estate funds for sales? What kind of buyers do you have?
First question about ComVem. Thank you for the question. When we began the project, Patteo Urupema, the decision to convert to ComVem was due to the facility, the operation, the financial part for ComVem absorbed Patteo Urupema. I can tell you that for the first 60 days.
Now, recently, due to the size of the asset, our decision was to remove it from ComVem and take it to the shopping mall platform. That is the only reason. We have no other case where we will convert. This is the only one. Your second question, to whom we are talking to about sales. We have been working in the market to recycle assets.
With high interest rates, opportunities are few, and when they came, when we looked at the value, we preferred not to sell, to avoid selling at a very low price. What is happening now? We have a change now in the humor of the market. We had the first reduction in interest rates. The market naturally will change its posture and conversations begin in a block. We have talked to banks, the same buyers as we are. Investment funds that buy real estate.
When we make progress, obviously, we will pass this information to you. I believe that the market is beginning to change, beginning to invest in real estate as a good alternative. Just supplementing this issue of sale. We have been talking for some time to many players, strategic players, and also financial sponsors, banks, funds. Every asset is better for one type of investor, and this is in progress with many assets in all platforms. As this makes progress, and if we see an improvement with the lower interest rates now, with more traffic, the funds coming back to talk to us, we will notify you.
Thank you.
Our next question comes from Elvis Credendio. Sir, you have the floor.
Hello, Luiz , Daniel. We have two questions concerning divestment, sale of assets. Please comment on why you left the Semp Toshiba project and also Fortaleza, and your expectations to receive the payment from these sales, and other projects that you intend to sell. The second question, what you mentioned during the presentation, that there are negotiations that are more advanced. Are buyers willing to pay less, or you are having more appetite to recycle assets?
Elvis, talking about Semp Toshiba and Fortaleza. Fortaleza is a project that is in the final phase by the end of the month. The negotiation, the launching will be beginning of next year. We will launch and then we will follow the flow during the construction. This is an exchange with the owner. Semp Toshiba, we left this project. We sold. The money we had invested, part of it, we will receive the ComVem in exchange, ready from Helbor Construction Company and financial exchange.
We will have the launching of the towers at the end of this year, beginning of next year. This will depend on the market. Then we will receive this flow during two, three years of the construction, and then the rest at the end, when it is ready. Concerning other projects we are selling, there is interest on the part of some parties. We have seen an improvement in the cap rates. We have seen an improvement in the cap rates.
Until the first quarter, the environment was very unfavorable. If you looked at banks, purchases were with low rates. They came to talk to us with very, very bad caps. We did not continue these deals. Now things are changing. There are conversations in progress. Assets in opportunities, these are assets we will sell, and other assets too from 3A. When we see it is a good cap and also when the project is at the right maturity, we will sell.
Okay, thank you.
Our next question came in writing from Mr. Herman Lee from Bradesco BBI, and the question is, "Good afternoon. Thank you for the space. Now, with the drop in interest rates, do you see a better environment for sale? What are the perspectives for the next semester?"
Thank you, Herman. As we said here, the drop in the interest rate is positive. We see interest rates dropping, more funds willing to talk to us. In terms of debt, we have few debts linked to this interest rate. This drop in the interest rates helps the environment to sell our assets. For the second semester of 2023, we have some projects that we are talking to buyers. We do not know if they will be successful. For the second semester and 2024, we have a to-do list to find the best price to sell and de-leverage our debt and also help in the construction ahead of us.
Reminding you to ask questions, please use the button Q&A, dial your name, or through the MZiQ platform. Wait while we collect more questions. Once again, to ask questions, please use the button Q&A, or you can send through the platform MZiQ. The next question is from [Caio Cavalcanti from Unireal]. "With the recovery of IFIX, have you seen an increase in the demand for your assets? And where do you see a boom? In which kind of assets?"
Caio, thank you for the question. I believe that the recovery is in the beginning. What are we seeing in practice? Retail, suffering a lot. When we look at shopping malls, we see that the retail operations that are doing well have been doing well for some time. They were able to withstand the pandemic. They are very resilient. New operations and retail as a whole, they are still very worried. In hotels, I am noticing an improvement.
Our Hilton is an important thermometer. The business environment, travel, business is beginning to come back. Hilton Hotel is for business Monday to Friday and tourism Saturday, Sunday. There is an improvement. Commercial floors, I would say yes and no. Yes, in some cases, you can see that our projects that I showed in 3A, they are very focused in premium locations. We notice that the square meter continues to be worth a high price. In these points, premium points, there is demand, and demand coming back strong.
There is still a high vacancy in the segment, and that is why we decided to change the project in Nações Unidas freeway. So two answers for the same question concerning commercial floors.
Our next question is from Mr. Caio Loureiro. In your vision, the worst is over, or do you still see any segment deteriorating due to high interest rates? What is your estimate for CapEx this year?
Caio, Daniel speaking. We believe there are sectors that we are concerned with some sectors. Some segments, especially retail, we see some retailers suffering, and you have seen this in the news. Some delinquencies, so we are always monitoring. We believe that our ABL position is low for this segment. We have small exposure to this segment. In hotels and commercial floors, we do not see a deterioration.
Corporates, we have premium locations and tailor-made projects, so we can obtain a better price per square meter. Now speaking of CapEx for 2023, we have here foreseen BRL 126 million for 2023, so for the second semester. In the next few years, we have a schedule with launches and the evolution of the projects we have in the next four years. That is why we mention the sale of assets due to our needs for cash. We need to sell to support these construction projects.
Our next question comes from Mr. [Leandro Koller]. Financial results were affected by interest rates. Will you sell assets to decrease the company's debt?
Leandro, our results, obviously, last year we had some effect due to interest rates, high interest rates, but most of our debts are long. Yes, we were affected by higher interest rates. Now, concerning the sale of assets, in the radar, I already mentioned we have many in progress. We have assets that we are selling, and in the next semester, and in 2024, we will sell assets to decrease debt and to have sufficient cash to fund the next projects.
Reminding you to ask questions, please dial your name and your company's name. Wait while we collect more questions. Our next question comes from Mr. Andre Dib, Itaú BBA. A follow-up on the sale of assets. Can you tell us the variation of cap rates between the segments, and what assets are preferred by buyers? What is the leverage that you intend to reach?
Well, let us talk about cap. Looking at each platform, we have an expectation. This depends on the quality of the asset. We have assets that we know that we will not obtain the best cap, but we will not sell at any price that may affect the value of the project. We have a hotel that may be sold with good caps. The idea of the cap, we do not know yet because we are recovering from the pandemic. We had the pandemic.
The value of the asset was the cost. Now we have transactions from 8% to 10% more. We will always evaluate, depending on the asset, what we believe makes sense to sell. For corporate floors, the cap is different, lower. This is an expectation. We have assets that are in premium locations. It depends on the quality of the asset and other assets in opportunities or ComVem that we may think of selling, we will study. I will not tell you that I have a certain expectation.
It depends on the asset, on the location. Well, did we answer? Level of leverage. Today, we have a leverage, BRL 970. We will continue this year with this level unless some of these transactions are closed, and then we will use part or all of the payment. Many assets have also debts linked to them. To sell, we have to pay the debt. We believe next year the leverage of the company will improve with the sale of these assets.
Our next question comes from Mr. Elvis Credendio from BTG Pactual. Another question linked to 3A Pinheiros. With the delivery close, you talked about the rental to a single tenant. How are the negotiations for rental? Also price of rent, since it is a premium location. We have seen very high rents in this region. How much do you believe you can charge?
Well, thank you. This is an interesting question. As the floors are completed, we informed the market. What I can tell you is that we work with two possibilities. First, to have a single tenant and the possibility of having more than one tenant. Today, we have in a firm way, three proposals. All of them for a single user, single tenant. I cannot tell you who they are. We are still negotiating. One of them is a user that arrived first. I believe that we will be able to give you good news in the next 60 days. Before it is ready, we hope to have a contract signed. In relation to values in that region, we see many commercial buildings being built. What is happening? Once again, it depends on the quality of the asset, and this makes a great difference.
You cannot compare different assets with different qualities, although they are close. There, it is between BRL 135 to BRL 155 per square meter for rental. BRL 135 to BRL 155 per square meter. Thank you.
Our next question comes from Lucas Machado, J Machado Real Estate. Thinking in the long term, do you believe you will reduce the number of different projects you have?
Hello, Lucas. Our expectation is that naturally, opportunities, we might leave opportunities unless we find something interesting, but we may leave opportunities. We are leaving opportunities. Yes, we will decrease our presence in the opportunities platform. This will happen in the next few years from now until 2026. We have Hotel W completed next year. We will focus a lot on ComVem stores, which is our growth platform, and 3A. We have many assets already begun and some to begin. 3A depends on premium locations. We have projects in excellent locations, and ComVem is our growth engine. Yes, we will leave some of these areas and remain in others. In the future, we hope the situation will improve, and the price of the company in the stock market will reflect the quality of the assets. Thank you.
Since we have no more questions, the Q&A session is concluded. Now we would like to pass the floor to the CEO, Mr. Luiz Henrique Costa, for his final comments. Sir, you have the floor.
Well, once again, I would like to thank the participants. I would like to summarize what we said to you. Before anything else, we are optimistic in our business. We believe a lot in the business. We believe because it is a unique business. Unique because it is multi-platform, also due to the quality of the assets, excellent quality assets. This is something that brings resilience to our business. Our business is resilient, as we have been, and it is a business that has a platform that can scale.
The last question, with Daniel's question, it became evident that yes, we will focus on less areas. We will concentrate on those that can scale. We have a challenge, which is to grow, but we have a challenge before that, which is to deliver what we decided to deliver and is being delivered this year, next year, 2025. We have a lot to deliver to make a reality. We will only have credibility from all if we do this. First thing, deliver this pipeline of projects with excellence as we did in the past. I believe we will do this. We will accelerate the agenda to deleverage. This will be the engine that will help the company to grow. The delivery of the pipeline without losing focus on the quality of the operation and the proximity to the retail market in our several areas.
My message is one of optimism for the period we have ahead of us and with our feet on the ground and without great changes because the real estate market has a long cycle and requires prudence and resilience. We want this with maturity. Thank you. We wish you a good afternoon.
The conference call is concluded. We thank you for participating. We wish you a good day.