Hi, ladies and gentlemen. Welcome to the video conference of results of LOG CP fourth quarter 2021. With us are Mr. Sérgio Fischer, CEO, and André Vitória, CFO and Director of IR. The presentation is being recorded and translated simultaneously. The translation is available upon clicking on Interpretation. If you are listening in English, you can mute the original audio. During the presentation of the company, all participants will have their mics enabled. We'll have our Q&A. In order to ask questions, click on Q&A, stating your name and company. Upon being announced, you'll have the opportunity to enable your mic, ask some questions. Statements that may be made during this video conference concerning the perspectives of business, operational goals and financial ones are based upon projections of the company that can or not happen.
Investors should understand that macroeconomic and political as well as operational aspects may affect that and may differ from those foreseen in the future. The fourth quarter of 2021, the floor is with Mr. Sérgio Fischer.
Thank you for your participation on the call of the fourth quarter 2021. The best year of our history, records in all our cycles of business. 10 plots of land, 10 cities, 519,000 sq m. We have approximately 9% land bank dedicated to construction. Record projects approved BRL 449 million. Double the same period last year. In 2021, deliveries five projects in six cities, 221,000 sq m in GLA.
We reinforce our capacity of growth in all areas of the country with considered yields. We had 10 projects simultaneously with more than 1,500 collaborators, employees in construction sites. When we're thinking interest rates, the demand for our assets will keep on growing in e-commerce in the country. E-commerce had an expressive result in 2021. To meet that demand, our infrastructure and our quality will only increase. Our portfolio has 63% of GLA connected to e-commerce. Gross absorption 78.5%. Being present in the main consumption centers in Brazil, we keep on with that mindset. 86% out of the core, the hill São Paulo LOG consolidates more and more as a strategic partner of these companies. We had BTS with five contracts, with 500 million sq m.
3% in the stabilized vacancies compared to 11% in general. We had contractual readjustments, 0.6% above the average inflation. Our structure for the administration of the condos, LOG DM. Having our clients become loyal and trustworthy of our administration. 2021 was very productive, and we are prepared to keep on growing as planned through 2022. The expectation of indicators is even more strong. 400 million sq m to be delivered, and most of that is pre-leased.
Thank you, Sérgio. I'd like to talk about our generation of value. Greenfield fourth quarter 2021, BRL 73 million in new projects. In the year 2021, BRL 291 million. That generation of value is and will have CapEx and relevant yields that tell us apart in the market.
We are recognized by the main capital institutions in the market. We captured BRL 700 million without burdening our assets. 11% of our PL is our debt. BRL 900 million is our cash flow, BRL 3.8 billion for investment in assets. We have been investing in the growth of our business organically with leveraging in the levels of what the market sets. Taking the company to a new level gradually, with delivery of new assets and better prices. Default is close to zero. EBITDA 95% growth higher than the previous year. 79.2% was our margin. The net revenue accrued 169% compared to the same period of last year. We had a net revenue of BRL 383.2 million.
Yield with dividends at 0.86 per share. In 2021, 77% of our condos are supplied from the free market of energy from renewable energies, with a reduction of 26% in costs for our rentals. Our inventory of emissions of CO2 are ongoing, and they will be presented in our board next report on sustainability in 2022. We had social actions that were very important. Our social center in Maracanaú in Fortaleza, helping the community in the qualification of basic and professionalizing training. This initiative is permanent and has been growing stronger and stronger and expanding to Viana's Beach Center and Betim in Minas Gerais. In Contagem, Minas Gerais, we focused on healthcare. 600 consultations, ophthalmologic ones. We donated lenses as per demand. Thank you. Now we are going to Q&A.
We are going to remind you that you should click on Q&A, typing in your name and your company. Upon being announced, a request to enable your microphone should appear, and then you activate that in order to ask a question. Our first question, Gustavo. Gustavo Cambauva, analyst sell-side of BTG Pactual. Gustavo, your mic is enabled, floor is yours.
Hi, good morning. Two questions. If you would firstly comment on how you're seeing the capacity of passing on the inflation on rents. Apparently you've been very close to IPCA, but 2022 has a scenario of high inflation. May you face difficulties or you are going to keep on going up in terms, at least when it comes to rentals? 83% of the GLA was delivered. Would like to hear about the segments and who were the renters.
Is e-commerce the major driver of yours, or in terms of companies? If you have seen more companies, smaller ones locating, renting smaller areas.
Hi. Hi, this is Sérgio. Thank you for the questions. I'll start with the second. When it comes to pre-rental, pre-leasing, the number is very strong. Our business has the characteristic of having at least very close to the number of built area. Our people is organizing to be ahead of the game, so because the market is very much warmed up. 2022 will be a record year for us. We are prepared. Our construction work is advanced. More than 500 million sq m in GLA. That comes from our businesses, from our client bases.
The relationship with the leases is that. On your second question, we have seen a very positive moment in the sector in terms of the capacity of price fixation. We've been able to pass on inflation, and I think that we are going to go even slightly above inflation this year. We have a new level, a new tier in terms of prices, maintaining the yields that we have as a goal here. Yes, we are going to keep on passing on at least the inflation and trying to go above that.
Our next question is by Ygor Altero, a sell-side analyst, XP. We are going to enable Ygor's mic now. Floor is yours, Ygor. Ygor, floor is yours.
Good morning. I think you can hear me now, right? Please let me know.
Yes, we are with you.
The dynamics of investment, how are you seeing the year of 2022 with the interest rates slightly above in terms of a level and the asset sales, how are the conversations from a strategic standpoint?
This is Sérgio. We have been talking about that for a while, and this cycle and the closing, the closure of this capital cycle is the strategy that we are going to maintain. Our goal is to maintain the BRL 300 million that we had last year. We have topics that pop up here and there about new strategies. But what we can ascertain is that spreads, I think we are at a very good level. We have been talking with the different sectors, the two different sectors. The cap, the spread had a little contraction.
Very marginal, yeah. We have our assets, but historically, we had assets at 12%. This year, the scenario is kind of marginal, what allows us to have gross margins that are relevant for this moment. We are going to keep on going that way. There is a demand, funds and traditional investments, and we are here to do more than we did last year.
Thank you for the answer and congratulations on the results.
Our next question is Bruno Mendonça, sell-side analyst, Bradesco BBI. Bruno, we are enabling your mic, so please go on.
Good morning. Thank you for the opportunity to ask questions. Costs, how do you see the trends in CapEx of construction?
If the cost of constructions is stabilizing or kind of giving room to save in some areas, maybe you can respond that based on the deliveries of 2022. LOG, competition-wise, you've always had a differential in terms of construction at the square meter. Your differential, your competitive edge is increasing, or is there a different trend? How are you doing in the market? That's my question. Thank you.
Thank you. The construction costs, the year is a little better. Things started slightly slower than last year. We hope that the construction costs reaches a plateau and even drops. When it comes to steel, we see that happening and the metallic structures that we are budgeting for are presenting different numbers that are more optimistic.
Deliveries in 2022, as we have a lot of BTS with a major stake, we are maintaining a yield of 12%. These deliveries of 2022 will be maintained in the order of 12%. We hear word of mouth about the competition that nevertheless they are 20% or something in that order above us. I don't think that difference increased or decreased. It's stable.
Thank you. Have a great day.
Our next question is by Alex Ferraz, Itaú BBA, sell-side analyst. Alex, your mic is enabled.
Good morning, Sérgio, André. Thank you for the presentation. I have two questions. The first one has to do with the demand for e-commerce. We have seen new players in this market, Shopee, for instance, with more aggressive strategies and even heated up the competition in this market.
Did you feel any affected by the strategy of these new players in the market in the way that may have changed your strategy? My second question, the industrial market in Betim, the PEB, GDP has a sales classification that is very good, but how is it going? Are you going to accelerate the leasing of the lot or what?
Thank you. This is Sérgio. Demand of e-commerce. Independent on the macro scenario, which was challenging last year, we see e-commerce growing double-digit, and things are very optimistic for e-commerce. Our sector is somehow protected from that, from the problem that the market has faced. We have been looking for new operations. Clients are looking for people looking for being closer to major centers in Brazil.
That is no different from before, but it has gone a little stronger in terms of competition due to these new competitors. I haven't personally seen any major change in our demand. There is no growth in demand because of that. That is different. E-commerce is growing and we have BTS in demand, and we have been very optimistic. GDP. Our strategy has been always paying attention to the size of the project, 6,000 million sq m. We've always been very aggressive in our strategy. I think we see great consolidation. It's a platform of e-commerce in Belo Horizonte. We see a speed of sales that has even gone up and are in line with the project.
Thank you. It was very clear.
Our next question is André Mazini, sell-side analyst from Citi. André, your mic will be enabled. Floor is yours.
Good morning. Thank you for the call. The average ticket that is 16 for the high sq m, how would that dynamic may change if you were to change BTS? We see that your BTS is very customized. The technology seems to be more and the construction looks more modern. These IPs would be a factor to increase the average ticket in leases and or rentals with the IPs. Secondly, the profitability of the cash flow that was very profitable in the last quarter. I think you have double-digit profitability level. So what are your strategies now within the risk standards and trends that you have seen in the market? Maybe the curve may be longer.
You have been able to get profits, now may be higher than even than last year.
This is Sérgio. Sérgio speaking. The average ticket. You see that as we deliver the assets, the trend is to increase. I think it's important to mention that the company 10 years ago was just very focused on Southeast with an average ticket in São Paulo and Minas, and it's diversifying. It's year 16, 17. Some BTS has some IPs, and that is on the ticket of location ticket. So you'll see that increasing as the BTSs are delivered. Some of them are above the average, way above the average. Of course, they are exceptions. March will have the revenue very promising.
This is André. Well, in terms of our treasury, we have had maintained a very conservative strategy.
We have been managing that position. We have a solid cash flow with the construction works that we have in place, and we have this focus. Exposure in LTN, a reality that can actually do what we call the offset of the financial expenses. In the last quarters, we have been abiding by that policy, those policies. We have financial expenses that we can actually fix with our financial policy.
Thank you, Sérgio, André. Have a great day.
Our next question, Fanny, outside analyst from Santander. Fanny, we'll enable your mic so that you can go on. Fanny, please. Floor is yours.
Good morning, Sérgio, André. Most of my questions are answered here.
Would you go deeper into what the investments are and what are the demands of these traditional investors in the end of the fourth quarter? We saw new partnerships. Would that type of partnership be interesting to you?
What have we seen? The spread has decreased by, according to the cap. Some assets below seven that currently are at 7.5. A very optimistic scenario, as I mentioned earlier. We want to do that. That is in the strategy for us not only with the closure of capital of each asset. We have seen demand, the real estate funds and traditional ones. We are not gonna go the same line as GLP because it's important to understand the moment of the investment of the company. We grow and we do these recyclings.
There are very promising opportunities, and we are hoping for more than last year, even.
Great, Sérgio. Thank you.
Our next question is from Raul Breck, sell-side, Eleven Financial. Raul, we'll enable your mic now. Floor is yours.
Good morning. This is a follow-up on investments that you have emphasized. What do you foresee this year in terms of dynamics of investments? Will it be towards BTS because it sells easier? Or do you think about having investments in condominium investment as a LOG? How would the dynamic be in the portfolio, and what we would be able to see in terms of changes, if you would be able to comment a little further on that?
Thank you. Raul, thank you. This is Sérgio. We have the intention of doing both moves.
BTS and speculative part, there is great demand for both. You have to have the right audience, but it's very likely that we'll go for both directions. There is room for both, certainly.
Thank you. Have a great day.
Our next question is by Mr. Felipe Pinheiro, Polo Capital, sell-side analyst. Your mic will be enabled, Felipe. Floor is yours.
Felipe Pinheiro, good morning. I think my question was answered actually, but thank you for the opportunity anyways.
Now Marcelo Bernardi, sell-side, Safra. Marcelo, floor is yours. Your mic is enabled so that you can go on. Within the segment of speculative warehouses, if the new costs of the assets are already seen somehow, or whether that will take some time. That was the question by Marcelo.
We have a very positive position in terms of price, and that position came from two movements. The cost of production went up. Construction costs went up by 30% in the sector, and new investments are coming on that base and basis. The IGPM and IPCA has led us to think more efficiently. We have seen that recovery happening very fast. Construction costs have gone up very fast. Now we see very positive scenario for the future. Thank you.
Q&A is closed. Now I'd like to pass the floor to Mr. Sérgio Fischer for his final remarks.
I'd like to emphasize three points that I think are important here. Macro scenario, interest rates are higher, and that how that will impact the sector. We have two drivers of demand for LOG e-commerce.
One of them that I don't think will change, I think will keep on growing compared to other countries, more developed. We are behind, and that will keep on going, and especially out of the area, Rio, São Paulo and another flight to quality that we have seen in past crisis. The quality of the assets, investments, I think those drivers will not be impacted despite having a more challenging year. Operational 2022, we believe we'll have a record year, very relevant, and we are going to deliver more than 400,000 sq m in GLA. Mostly BTS will take company to a new level, and we'll start picking the fruits of our labor in the same level as the operational recycling I mentioned a lot here. What is important for Log, we'll keep on doing.
We are not concerned because our balance report is very positive, and recycling is to go up in terms of price.
I thank you all for being with us today and have a great day. The video conference of results of LOG is hereby closed and adjourned. The email @logcp.com.br is open for questions. Thank you all for your participation. Have a great day. Thank you.