Good afternoon, ladies and gentlemen. Welcome to the conference call of HBR Realty for the earnings concerning Q1 2023. This conference call is being recorded, and the replay may be accessed at the company's site, www.ri.hbrealty.com.br. The presentation is also available for download. We inform that all the participants will be in the listen mode only during the presentation. Next, we will begin the Q&A session, when further instructions will be supplied. Before we continue, I'd like to say that the declarations are based on beliefs and assumptions of the management of HBR Realty and the current information available to the company. These declarations may involve risks and uncertainties. They and therefore depend on circumstances that may or may not occur. Events related to the macroeconomic environment, the segment, and other factors may make the results different from those expressed in the declarations.
We have with us Mr. Luiz Henrique Costa, CEO of HBR Realty, Mr. Daniel Viterbo, CFO and investor relations director, and Mr. Mauricio Koakutsu, investor relations manager. Now I'd like to pass the floor to Mr. Luiz Henrique Costa, who will begin the presentation. Mr. Luiz, you may begin.
Good afternoon. We're here once again to bring the earnings of Q1 2023 of HBR Realty. I will begin making some comments about operations with data about the business, our operation, and next, Daniel, our CFO, will give us details about the financial information in Q1 2023. Q1 2023, we had a growth in all the lines of the business. In the main lines of the business, we had a growth in revenue, 6%, always comparing with Q1 2022, NOI 13%, and with greater adjustment in adjusted EBITDA 15%, BRL 19 million.
Detailing more our main platforms, opportunities, and ComVem, we see a growth in malls in total sales 15%, and in same-store sales, we see in the same stores 12% growth comparing Q1 2023 to Q1 2022. NOI of BRL 12.7 million, with an increase of 7% in relation to last year. In ComVem, we have an increase in revenue of 37%. After, in the detail, I will talk more explaining this number, and sales grew 66%, BRL 54 million in 2023. In opportunities, hotel and self-storage, Hilton Garden Inn, we had a growth of 77% due to two factors, an increase and a natural correction in an increase in the daily rates and the occupancy of the hotel. 77% growth in RevPAR. Self-storage, we grew 19%, and now we want to continue with the performance we have obtained this year.
In terms of projects, we have two projects to show the progress. We have our corporate tower in 3A platform. It is being built on Rua João Moura in Pinheiros. We will see a picture. A little over 30% construction completed, and there's a forecast for delivery of this tower in Q1 next year, 2024. W Hotel, a robust project. We closed this quarter with almost 80% construction completed. We have a forecast to inaugurate the hotel Q1 2024 too. Now we can continue for page five. Now, I will give you details by platform. And now, ComVem today brings us 29 assets with 32,000 sq m of total GLA and 36 assets under development that will be delivered during this year, next year. And this will bring us 90,000 sq m in total.
In Q1, we inaugurated ComVem Faria Lima in São Paulo, and we grew 63% the total sales and 17% in same-store. This is due to the acquisition last year of ECP that gave us results in Q1, and an inauguration that we had in ComVem in the city of Olinda, a drive-thru of McDonald's, and brought this increase in sales. As we can see in the graphs below, we had a small drop in the occupancy, and this is due to three projects we have. I can detail these projects are Barra Funda, Bosque Maia, and São José dos Campos, where we're trying to improve the mix, and naturally, this implies in a greater turnover among the stores, in the stores.
We were able to close with same-store with +17%, an increase in total sales of more than 60%, explained by the new projects we acquired and inaugurated at the end of last year in the Q1. ABL closes Q1 with 32,700 sq m, a growth of 16% in relation to Q1 last year. On page six, we will see shopping malls. Shopping malls brought a total sales growth of 15%, same-store sales 12%, occupancy rate at 92%. We consider this very good for our standards. Later on, we will give you more details by shopping mall. On the right, you can see a picture of our shopping mall in Olinda. We talk about Patteo Olinda on this slide, an increase in sales of 15% in this shopping mall, and this helps us to work on the maturity of the project.
In shopping malls, consolidated total sales grew 15%, from BRL 277 to BRL 319. Slide seven, we have a vision by shopping mall, the vacancy, occupancy. This is the analysis that I began, both in Mogi and Suzano. We have a very strong occupancy, vacancy close to zero. It's a technical vacancy, 2% in both shopping malls. In Olinda, although we have a vacancy that remains at 82%, 86%, we can see a good performance in relation to same-store sales, the graph on the right. We had 19% increase in same-store sales. This shows to us that the shopping mall is beginning to go to a curve of maturity and consolidation with a stronger flow of people, and thus, the store owners that were there since the beginning of operation now are having a better performance. Now in Olinda, we have to gradually increase the occupancy.
We want 90%, 92%, but never forgetting the mix and the rents received. At the top, you see a picture of our shopping mall in Mogi. It has an occupancy of 97%. Next slide, we can see the AAA here, growth of the revenue, 9.2% growth in net revenue, comparing Q1 2023 with Q1 2022. We have 100% occupancy. No contracts were canceled, and the operation is very good. Our clients are happy there. We have a dynamic agenda on this platform. Right now, we're building, as I said in the beginning of the presentation, a project, a building on João Moura. On the right, you can see the picture. We have 10 floors for offices, and it has a mall at the bottom.
On the left, we have a mall with two floors, almost three floors, where we will have an adequate mix for those who are occupying these floors. This is the AAA João Moura. We have today a forecast to deliver this building in the beginning of next year, and we have a project that we will begin in Q2, second semester, sorry, in Itaim. During the year, during the quarters, we will give you more details about these projects. On the next slide, we talk about our hotel and +Box. In the W Hotel, we have almost 80% construction completed, so we are running tests. At the end of Q1, we will inaugurate our self-storage +Box, a growth of 19% in Q1 2023 versus 2022. Now we are improving the occupancy of this project.
Hilton Garden Inn reached 85% of occupied rooms, and this together with higher rates, brought growth of 77% in average RevPAR versus Q1 2022. Gross revenue in hotels reached 133% growth versus Q1 2022, BRL 3.2 million, and this is Hilton plus Ibis Hotel. We have three pictures here that I'd like to mention. On the right, upper hand right, we have Tamboré +Box. It's a yellow building, and the reception there on the left, and below this we have the Hilton Hotel on Rebouças Avenue, and plus a ComVem on the ground floor. Next slide, we see the indicators with a vision of our total ABL concerning HBR. I won't go into detail, but we begin showing by ComVem 3A opportunities, 284,140 sq m of ABL. This is the percentage that we have in these projects.
Right now, we have 139,000, as you can see on right, in operation and a forecast during the next few years until 2028 to get to 284,140 sq m. I will pass the floor to Daniel, and then I will be back for the Q&A session.
Thank you. Good afternoon. I will talk here about the financial data Luiz mentioned. Revenue. Our platforms are doing very well. We have growth. When we look at the managerial net revenue, we have managerial net review and IFRS. Slide 12. So growth of 6.4% in managerial net revenue. We reached BRL 35,261. In ComVem, you can see a growth of almost 37%, 3A, 9.2, with better rent rates. Here, a small drop in the next, in malls, in revenue 4.3 because Q1 2023, we had a very good recovery in terms of delinquency, and this had an influence.
In the NOI, you can see that malls is doing well. Opportunities to growing 13.5%, and others, other revenue. These are administration fees. The next slide, please. In terms of NOI, all the results were very good. We had a growth of 13% in comparison with Q1 2022. ComVem doing well, malls doing well, 7% higher, and 3A, 30%. We had not only an improvement in revenue, but an improvement in cost, which improved the NOI by 30%. Adjusted EBITDA, managerial, BRL 19 million. So we exclude the sales of HBR Capuava, which was finalized in February. It had an impact on the result. So if you take the result with this effect, it's practically BRL 30 million EBITDA, but it's non-recurrent. So we have a growth of almost 15%, as Luiz mentioned. Not only NOI grew 13%, but we had an increase in revenue as D&A.
FFO, we closed in the managerial, when we look here, BRL 1 million negative FFO, managerial adjusted FFO. With HBR Capuava, it is positive, but we exclude this. Net profit, BRL 1.5 million negative excluding the sale of the asset. We see an improvement despite higher financial expenses. Here, CapEx, we spent BRL 50 million, BRL 35 million with many projects, improvements, and BRL 15 million capital. On the right, you see here the deliveries for this year, 26,000 sq m. Next year, 50,000, 2026, and in 2028, the total amount. This graph is to show that we have a lot of CapEx going forward. These are the assets that are under construction. In debt, managerial indebtedness, the gross debt is practically stable in comparison with the last quarter. In this indicator, we compare with the previous quarter and the relation we see.
Net debt over property stable, 28% in this managerial vision, and these properties for investment, BRL 3.2 billion. These assets here, which make up this number. Talking about debt, we closed with almost BRL 265 million in cash. We have long duration, 97% of the debt is long-term, 12- 15 years, at a cost that is very attractive today because we have high interest rates in Brazil and well below the CDI index for interest in the next projects we will deliver. We have a leverage 12- 15 years. Amortization in the graph below, you can see the duration. Thus, we have less effect on the cash. It goes up to 2030. Most of the debt is in the malls, which have a very good performance. They pay their bills and the rest in HBR 3A in ComVem. This is a summary of the financial data.
Now we will begin the Q&A session. I will pass the floor to Luiz for his final comments, and we will be available for any other questions.
Just to conclude our presentation before going on to the Q&A session, I believe some points I mentioned in the previous call, we will hear this in the next quarters too. I believe that, first of all, we are very healthy in financial terms, operational terms, but the economy is facing hard times in Brazil and in the world. With this, we must have excellence in our operations. We must work with our feet on the ground. We will not run great risks. We have been very happy in choosing the assets, good assets in good locations. We have good assets, and this attracts clients that can rent our space. Of course, we are always waiting for new business opportunities.
Our business is resilient and long-term, and we are waiting until we have lower interest rates. This affects directly our business, our debt, and the investments we make. We are expecting lower interest rates. Apart from this, we can go on to the Q&A session.
Thank you. We would like to begin now the Q&A session for investors and analysts. If you wish to ask a question, please key in your name, your company, and your question. Please wait while we collect the questions. Our first question comes from Mr. Matheus Meloni, Santander.
Could you give us more details about the sale of HBR 4? Can we expect more sales in the opportunity or HBR 3A?
Matheus, Daniel, thank you for the question. We have finalized this sale now in February, and it was an asset that was 100% rented to a client of ours. They left the operation. As soon as we were informed, we sold and we did the due diligence now in February, and we sold the asset. It is an asset that we are selling. We are recycling the capital and other assets.
We have ongoing conversations. One is in progress at the end of due diligence. As soon as we have all the information, we will communicate this to the market. In 3A, we have conversations in progress, but Luiz already mentioned, as we have been saying in some meetings, the conversations are not going in the right direction. We do not want to burn the asset. It is a very good asset with very good liquidity, with a lot of value.
We are always talking, but the scenario is difficult. The business scenario is difficult. In a nutshell, we recycled HBR 4. We have other ongoing conversations with other projects. As soon as we have news, we will communicate to you.
Our next question comes from Herman Lee, Bradesco BBI.
Good afternoon. Two questions. How does the company see funding, sale of assets, and acquisitions due to the difficult situation? Why did the revenue in shopping malls drop, although you had an increase in sales?
Thank you, Herman. We see that the situation, the economic scenario is difficult. Interest rates are very high, cost of capital is high. This not only is bad for debts, but also causes problems in the sale of properties. We see that in the next few years, we believe things will improve. We have very good assets that are being built under construction. They will be ready next year, and we are always studying the sale of assets. We are always analyzing these opportunities.
This is our homework to bring the best solution for the company.
Reminding you that to ask questions, please send your name, your company, and your question in the field Q&A. Please wait while we collect the questions.
Herman, I forgot to answer your second question. I mentioned this during the presentation. The revenue from shopping malls has a small drop in relation to the baseline last year. Last year, we had a strong recovery in delinquency. This increased the numbers for last year. That is why you have this effect, this small drop.
Reminding you to ask questions, send your name, company, and question in the field Q&A on the left of your screen. Please wait while we collect more questions. Once again, to ask questions, please send your name, company, and question in the field Q&A on the left of your screen. Please wait while we collect more questions.
Our next question comes from Mr. Andre.
Good afternoon. Congratulations. What is the current occupation of Patteo Urupema? How is the recycling of assets? Anything new? The assets acquired from Cyrela, when will you launch them?
Good afternoon, Andre. Thank you for the question. Concerning Urupema, please, a little more patience. It was inaugurated on April 18, so we will talk about this in August concerning Q2. I am sorry, we will cover only the topics related to Q1. The recycling of assets. This is a good question. We have received this question many times. We have some assets looking for buyers, good assets that we have, we are willing to sell during this recycling to obtain funds for new projects. What happens is, with the interest rates that are very high and the recessive market, we are not finding people willing to pay. We are being selective in sales.
We don't want to burn the assets because we don't have a cash problem. We're being a little more demanding. But yes, we're open to recycle assets, and we're in the market selling some assets, offering some assets for sale. Concerning the assets bought from Cyrela, we have many projects in progress with Cyrela. I don't know which asset you are mentioning. We have projects with Cyrela in apartments and ComVem. They were launched. The construction has not begun, but we have already launched the sale. If you can be more specific, I can give you more details. Thank you. Urupema, we will answer this during our next conference call.
Once again, to ask questions, dial your name, company, and question in the Q&A field on the left of your screen. Please wait while we collect more questions. Our next question comes from Mr. Rafael.
Can you give us more details of the increase in the vacancy in the ComVems?
Thank you. I will give you more detail. The vacancy in ComVem went from 86%- 81%. These 5 percentage points include eight projects, but there are three that are responsible. Barra Funda represents almost 50% of the drop, Bosque Maia and São José dos Campos. They have different reasons. To give you more details, in Barra Funda, which is the highest, the vacancy is due to the following. We bought this project in 2021 and the ex-owner had made a negotiation with 20 store owners. Due to the pandemic, they did not have a fixed rent. Rent was a percentage of sales. When we bought, the pandemic was in the end. We renegotiated them new contracts, and almost all of them said no to new contracts. We wanted fixed contracts, and they left.
Vacancy went up a lot. Today, what I can say is that of these 20 stores, we have 14 that are rented, three or four are in negotiation. We should soon have normal occupancy in Barra Funda. The second ComVem which we can mention is Bosque Maia in Guarulhos. It is a mall that is anchored by a retail store, Pão de Açúcar, but we lost two large operations, two anchors, a hamburger shop and a pizza shop. We began at the beginning of this year to advertise, and we are already bringing new tenants. It's only an issue of time to recover this. With these two main actions that are big, we believe, we trust in the recovery of occupancy in these ComVems. I gave you more details to answer your question.
Our next question comes from Mr. Elvis Credendio, BTG Pactual.
Good afternoon. Can you talk about the strategy of improving the mix and can you give us also the occupancy for this segment?
Hi, Elvis. Once again, thank you. The strategy for requalification of the mix depends first on the location of this project and also the occupants. I'll give you two examples. We have a ComVem which will anchor our project in João Moura, and the mix of this ComVem, we will wait a little to see the vocation of Tower 3A. It will be occupied by one client or many clients, and then we will look at the adequate mix for that tower. We have a situation which is a ComVem that is anchored a +Box in September. This is on the freeway Tietê. We inaugurate in November. There, the vocation is a little different. It's focused on large anchors.
We will have there a store of pets, McDonald's, maybe a drive-through, and our +Box anchors this, so this will change the mix. When you go to a ComVem in a suburb or residential area, we look for this ComVem mix that will be good for those who live in the towers. It will be retail, maybe a supermarket. In Bosque Maia, we have a store of a supermarket, Pão de Açúcar, for selling food to that public and also those who drive by and inside. The vocation is not standard like a closed shopping mall. We have to remember that these are standalone malls in the streets, so we always have to decide depending on the people who will be walking or driving by. Elvis, you asked two questions. The second question, our expectations in terms of occupancy.
We believe that the ComVem will reach 88%-90% occupancy. Because of this dynamics, it is a little different from a closed shopping mall, which has higher occupancy rates. But we understand that 90% occupancy for ComVem is very good and financially, operationally is very good.
Reminding you to ask questions, please dial the question with your name and your company in the Q&A field on the left of your screen. Please wait while we collect more questions. Once again, to ask questions, please dial your name, your company, and your question in the Q&A field on the left of your screen. Please wait while we collect more questions. Our next question comes from Mr. Albert.
Good afternoon. Thank you. Why is the revenue from your buildings go down 8.8% if your occupancy is at 100%? I imagine that this year you will have a positive cash flow. This happens, the compensation via dividends or repurchase of shares will happen?
Thank you, Albert, for the question. The revenue from rents from our own buildings has dropped because of the sale of assets. This asset was very relevant. We sold it, and it influenced this number. The future of real estate. Our assets have very good locations in regions that are growing. We believe that with these assets, we are not concerned with their future. The current real estate projects are being sought, and we are selecting the projects for corporate floors. The other question on positive cash flow, whether we will have dividends or repurchase. If we have profits, we will discuss this with the controllers and shareholders, how we will redistribute this. Let's see the year, how things go. There is nothing defined.
We have a lot of CapEx, a lot of construction, so cash we will probably use for these constructions. And the last point, you are right, it is excessive. The equity value of the company is inferior to some of our assets. We have 85 assets, so it does not represent the value that we see as the real value of the company.
Reminding you to ask questions, please dial your name, your company, your question in the field Q&A on the left of your screen. Wait while we collect more questions. The Q&A session is concluded. I would like to pass the floor to the CEO of the company, Mr. Luiz Henrique Costa, for his final comments. Sir, you may proceed.
Well, we are here, Daniel, myself, and Mauricio. We would like to thank you for your participation, the audience, for your time and your interest.
The level of the questions is very positive due to something which we want to do to increase our exposure to the market, to investors. The main messages that we try to convey were passed our investor relations area through Daniel and Mauricio, and myself, we're always available to clarify more points and talk about the company. On my part, thank you, and I'd like to pass the floor to Daniel for his final comments.
Thank you for your time to clarify all the doubts. If you have more questions, please use the investor relations site and talk to us. These questions will get to Mauricio and myself. We're available for any questions you may have. I believe we have a promising scenario in terms of operations. The company is doing well, and we will continue, and we will meet in the next conference call. Thank you.
The conference call of HBR Realty is concluded. We thank you for participating, and we wish you a good afternoon.