Good morning. Thank you for being here in our LOG Day. It's a pleasure having you here in São Paulo. The last meeting we had was long ago. It was virtual. We did that from Belo Horizonte. It's a privilege to have you here, sharing, hearing the moment, what we're living now at LOG, our strategy, where we're going, information. We're going to share many interesting aspects of what we are doing. We are here with Sérgio, Marcio, our Executive Director, Rodrigo, Executive Director of Real Estate. And I would like to give the floor to Sérgio for him to talk the schedule and the dynamics we're going to share here in these few hours.
Thank... It's a pleasure to have you guys here.
We're going to have a very interesting talk in the next two hours, to talk about this great period we're living, the company, what they're doing this year, what they're going to do short term, and talk a little bit about long term, what about our vision on the next years. The dynamic today, we have LOG Properties, talk about our operational portfolio. Guilherme is going to give some details about it, about real estate, vacancy on real estate. We are going to talk assets, direction.
We're going to focus on our unit business, where we do the management of assets, and then we're going to go LOG development, talk about our development strategy, real estate, banking, approvals, projects, and then we're going to talk about construction, and then we're going to talk a little bit about what do we expect for the plan in 2024, what we are going to deliver, where we are going to deliver, and the return from our assets. And then we're going to talk about the summary about the growing plan that we launched in 2021. We're going to talk about ESG, and then we're going to talk about the next growing cycle and the plan, everybody for one, what we're going to do from 2025 to 2021. That's our scheduling.
In two hours or 1.5 hours, we're going to finish, and then we go to our next events. We would like to start, we want to talk about LOG Properties. I would like to give the floor to Guilherme, our Commercial Director. He's going to talk about our initiatives.
Good morning. As Sérgio talked, we're going to talk about what we did from 2022, 2020 till now, and talk about the future. To talk about this accountability, we're going to talk about what is the model of our commercial operation. Everybody knows we have a regionalized operations. We are based in Belém, but we have. It's necessary to understand in detail what we do and how we do.
In Recife, we have an office with its own company that take care of the operation, Northeast and North. In Belo Horizonte, we have own team, where we have executive. We have our headquarters in BH, and they have their own teams, where they take about regionally. São Paulo, have another team that do the whole management from São Paulo, Rio, and the south of Brazil. On the new business cell, we have also in São Paulo, where we work the institutional agenda, the big negotiations that generate business for the other offices, for the other managers, for the other geographies. All that is our own intelligence market knowledge that map the market in Brazil, not only on logistic, on real estate, but also isolated points, which are the biggest growth area from our company.
When you look at Brazil, the quantity of corporate clients, this moves our intelligence, our management, to look for information in the market with our 240 active clients that bring intelligence for us, data. This generates assertiveness to bring an asset for a new geography. I'm going to talk about 2020. When we launched this plan in 2019, we started this plan. The company generate 2 million sq m of absorption. From January of 2020, 2.5 million sq m. We can talk about the proximity, 30% that was done by our own LOG Commercial team that we have on the operations. This generates a closeness to our client, which feed us with assertiveness in our growth plan on different sectors-...
where the economy is growing and where everything is going to. This generates more presence in the market. We generate 1.6, reducing vacancy. The vacancy is around 10%-11%, and LOG works with vacancy under 2%, and more important than that is the price. From 2020 to today, we raised 34% our average ticket for leasing. We see, in our opinion, that we are growing. The price is national. There's a national federal political price. We're talking about BRL 6 per sq m, and today we cannot talk about under BRL 20 per sq m of leasing. We see a difference, a big difference, a smaller difference from the leasing price from the big cities to the countryside.
We are having here similar prices, and that's part of development plan, to keep this level, to have like the same price around the whole country. When we talk about the movement, where Brazil is going, when we look at our territory, we bring the numbers, close numbers from the third quarter this year. This market intelligence is being close to the client. I don't get tired talking about it, because what-- that's what we do, we know the market. This generates a renovation of our... 30% of our... It's hard for some clients to not stay with us, to not renew their contracts with us. We understand their pains, their demands, but we like to look at the reality of the contract in the real estate, in the region, focusing in price and a low vacancy rate.
This generates the fifth quarter that we are giving back 1.5% more than inflation. How this works? This works as a renewal of contract, not only with a level of IPCA for 1.5%. We are talking about a low vacancy, give us the possibility to change a client when the price is not satisfactory. At the moment, this can generate again a fifth quarter with 1.5% of dividends above the inflation. This generates this year the biggest absorption of commercial real estate in Brazil. We have the second biggest absorption of real estate, corporate real estate. This is it, André? Just to show the power, the selling power and the profile of our operation.
Again, we're bringing a sureness that our DNA, when we were born, that being present in the whole regions of Brazil, to grow in Brazil, would have a market presence that bring big results. This slide shows that. These numbers that we have here, they are the demand, the bruta absorption, the gross absorption that we're talking about, about 2020-2022. Not talking about that, what we produce from 2020 till today. From the beginning of the pandemic, we are talking with the biggest driver from their knowledge in what we're doing. We see the e-commerce is still growing, and we see, we're looking ahead. When we see the growth, we are talking about the expansion, etc., is going to talk about. When you see here, the yellow bars, pharma and other companies, they grow a lot.
This is an important segment. This was always an important segment for us. This growth from the last three-four years is the biggest sector that demands area in whole Brazil. This shows that how assertive we are in our operations. Our modular project is spread in whole Brazil, that we have this demand, not keeping in mind the knowing how important the vacancy and the presence and absorption. That's one of the biggest pillars of the growing in our company. This is close with this knowledge of market that we have, our way of working that see again demands, information, development on real estate, construction, financing, and this generate new business where we can present in the future in growth for Brazil. Thank you, André. Before we go to we give the floor to Márcio to talk about management of our assets.
Good morning, everybody. Thank you for being here. I'm going to talk a little bit about LOG ADM, that's our property, real estate management. You guys know that. That's our area, the what we are investing the last years, a lot in innovation that bring new revenue lines for us. That is area that we have 1.5 million of sq m under our administration, where 600 million sq m are on the management of third parties. This with a margin of 50%, that represent an income of- In the last years, we did not a bigger investment on technology, on a digital platform that we call Log Plus. This connect all the clients, all our clients, and bring lots of business to our clients, where they can access this platform, and they can connect to many business opportunities.
We launch now Log Shop, which is our last news this quarter, where they can contract services, rent of equipment with a new aspect on what we're doing, the where we can receive, we can rent machine for for retail, and where we can have big return on this kind of transactions. On LOG ADM, we mind, and we worry about sustainability, not only on LOG ADM. When we talk about construction, it's a very important point for us. On LOG ADM, we do energy management, very efficient. 100% of our energy is from renewable sources, certified by institutions, and we are 100% on the energy market. That generates a saving of 20% from our partners, being a huge gain for our clients and bring our differentiation for us, different to our competitors.
When we talk about solutions for the clients, we have a tech office, a very robust in Belo Horizonte. We can attend more than 5.5 O.S. It's certified since 2001, that it's supported by our great service. We're launching an operational control center, where we're integrating the two new cameras that we have on the parks we are be present. We are bringing more safety to our clients to improve the safety that's fundamental for all of us. All of that, we are always focused on the journey of the client. We have a high degree of quality, and we look always to find new ways of improve the relationship with the client. We have a relationship department.
We have sometimes when it's necessary, some agile support and brings a very big return where we can bring on the commercial side. Where we have many clients on LOG's and where they have when we are on the site, when we have, like, supervisor there on the site, directly the client, that makes a big difference because we want to be close, as close as possible to the client. Log Plus supervision, our supervision makes a big difference for us. Anything else, André? This represents LOG Properties as well. This raise of 34% raise on the ticket, average ticket, and this innovation connected to the LOG ADM. Let's talk about Log Development, and then I'm going to give to Sergio for him to talk about our strategy. Everybody knows, but it's important to remember that that's the power of our business.
We can talk about this tripod. This is our DNA, that we are 15 years already working like that, and that makes the difference for us to grow with difference, grow with return, and have our real estate 100% occupied. As Marcio said before, the company does everything from buying the real estate, bringing projects in, internal office for construction, re-lease as LOG ADM, that bring to us big agility to have a bigger return above the market and keep 100% of our real estate occupied. That show our vacancy rate on our real estate the last years. When we talk about geographies, we 15 years, we are talking about that. Brazil has a demand where logistical... We are in 16 states. Condos, when talk about corporate condos, well, we have like 10 operations around Brazil.
There is a big demand for that, and that's our thesis, and this is our geography, our secret of we have five regions of Brazil, they are connected with more, a very high rate of consumption, and they with a Class A condos for corporate business. We have to talk about the demand. Here is also very important, when we talk about the modularity and the flexible. It's hard to. We have some place, some... We're not talking about a big box. When we talk about these big sheds for corporate sheds, we have to talk about the feet, the all kind of demand, the size of the module. Do we have to have big projects, very assertive, to absorb those, this deficit for corporate sheds and big corporations for distribution. The success we have, the absorption of our real estate.
This tripod is very important. We'd like to emphasize this, but this is the secret of our success. The next one. Well, following our business cycle, we have this real estate development. We'll talk about this, our-
Good morning, everyone. Thank you for being here. Let me talk to you about our real estate development cycle that begins with the acquisition of land. Then there is the development of projects, up to the obtaining of all licenses to start the works. Let's look back at the previous four years. We managed to acquire, in this period, more than 1.5 million sq m, and we have approved more than 1.4 million sq m of warehouse area that spread throughout the entire country in relation to the geographical, the diversification we just mentioned, in a record time of 9 months only, between the development of projects and the final delivery of completed works. This, I believe, is the result or the reason, let's say.
We have a study performed by our internal law team since the geographic diversification analysis and also project development and engineering works. We have what we call our project office. We have more than 25 professionals, engineers, architects, that are focused on the development of projects that are more and more adequate to the operations of the enterprises, adaptation to commercial needs. I believe that this has been a competitive edge, which allows us to reach this record absorption that Guilherme just mentioned. This, I believe, is a very positive aspect about our real estate development area. Some figures for you. In the past years, we have developed more than 6.6 million sq m of projects, and our project development processes, we use BIM for them.
I'm not sure if you know this tool, but it really helps when it comes to develop these projects and avoid what we call certain occurrences, interferences during the works. So this project cycle that is more and more standardized, will allow more efficient works with less reworking, a hiring and construction process that is more and more efficient. I believe these are the highlights here. And Lean also helps us in the project development processes, optimizing these processes as well, avoiding the need for reworking and saving time for us. I think these are the highlights at our real estate development area.
Yes, I like to say that the first main strategic decision, Rodrigo, right, is where we intend to purchase, to acquire land. Sometimes even the side of the highway, of the road, makes the difference, and these things will reflect on several aspects regarding construction, vacancy. This is the very important point of the start of this process. Let me give the floor to Marcio, and he'll talk to us about construction and works. Marcio, it's your turn.
We have a short video to play to you about our works. Oh! ... Okay, I think you have seen some of our current works. We haven't showed you all of them, but you could see some of them. Now in 2023, we are going to reach 1 million sq m of built area, and now we will also deliver with a 13.2% YoC. We have seen a very strong constructive trend. 2022 was a record year for us in terms of delivery. We delivered 415,000 sq m of ABL, and these were BTS projects. They are not our-- These are not our modular projects that we are more familiar with. These are customized projects that demand much more, effort from our engineering and real estate teams, and also our production crew.
So I believe that we are very well prepared for robust levels of delivery. We have a staff of around 2,000 people who are very ready for this growth. Talking about constructive efficiency and power, we have a colleague that is dedicated to, to this area, but who could not come. But we have several coordinators and engineers who are trained in-house, around 2,000 employees around the country, and a constructive cycle in the past 15 years that has been very well polished. At LOG, we have always tried to reach greater levels of efficiency. We have reached a peak of 14 ongoing projects in parallel, which is definitely not easy. We were working on a construction work in Belém, and then also in Gravataí, at the south of the country.
Without this staff, we would not be able to overcome these challenges, so we can really demonstrate our constructive power that we really have. I can say with certainty that we have the lowest cost for building warehouses in Brazil. This is a very interesting graph that shows you. In the past eight years, we have been below the average curve of the industry, and we could avoid to follow certain levels of inflation. During the pandemic, the costs increased, and that didn't happen to LOG only, but to the entire market. We were deeply impacted by the increase in metallic structures prices, but we have reached a certain stability of costs, which gives us certain tranquility for the following years.
We're not feeling the price pressure from the past three years, so we see a very promising future for us to keep on our growth plan without any hiccups or problems on the way. Very good. Let me talk to you about, and I can also share the floor with you, Sérgio, regarding the sales of assets. This shows the strength of our asset portfolio. Since the beginning of our growth cycle we've been talking about here, we reached BRL 2.1 billion of sales with an average margin of 34%. We began this growth in 2020 with the partial sales of five assets that made BRL 256 million. In 2022, we sold two assets, and throughout the past twelve months, we have reached BRL 1.6 billion of sales.
This goes to show the strength we have in our strategy, regardless of the macroeconomic scenario we find in our country, with the cycle of an increase in interest rates. This shows the strength we have in the execution of our strategy. We are consistently delivering and executing regardless of the macroeconomic scenario that can affect the country or not. When we talk about this movement, during this period, there were 14 assets involved in four distinct regions and four different purchases, either real estate funds or private investors. Here, we would like to show you the attractiveness and liquidity of our portfolio. When we have an eventual attraction here in São Paulo, we also see the same happening in the state of Paraná or in the Northeast. Our assets, they have an attractiveness that has national repercussion.
The margin of 34% in average, we can see here, the recurring value generation in recycling. With stabilized levels in, as Guilherme said, we also have a more positive trend in terms of prices, so our yield tends to have, an interesting trend. And also very important, there is a trend of caps compression. The attraction we have for assets will result a compression of, caps for the next transactions we intend to execute throughout the remaining part of this growth cycle. These are complex transactions. They require time, and they are structured operations. But we show here that we have an internal staff that is extremely well-prepared to execute these transactions, as we have been doing so far. Usually, a strategic decision that we make is our yield.
The current yields that we have, around 13%, these are the things that dictate, that guide us when we are going to make decisions. But there is also the internal ROI. Within our growth cycle, we usually present. Rodrigo said today that there was... Actually, usually, work cycles, they last around 12 months, and our assets, usually, they are being delivered 100% already leased. So the maturing or the maturity period has been becoming shorter and shorter. So as we have in this slide, the yields and caps, when we see a stabilization within 12 months, we see an internal ROI around 32%. This is an expressive return. I find it very relevant. And this 32.5% is tax-free.
So our projects, I believe they have management and attraction that are extremely relevant when we present the yield, the caps, and also the internal ROI. Let me give the floor to Sérgio, and we will share the floor to talk about our planning for 2024, what we intend to do within this last quarter of this year and 2024. All right, I think that the first key message for our day. All right. What do we plan to do up to the end of this year, actually, to the end of 2024? There are many works ongoing that will be delivered next year. These works will require BRL 850 million of total CapEx, and we intend to deliver more than 700,000 sq m of build areas. This is an expressive record for our company.
It is also good to mention that 37% of these works have already been leased. These deliveries, when they are not fully leased, when we deliver, they are almost fully leased, and that is really interesting. So that is going to be a record-breaking year for us. What do we intend to do here? What is our planning? We are going to sell. We will keep on selling. Recycling will serve as funding for 2024's CapEx. So we want to make a match between the invested CapEx, around BRL 150 million, and the estimated sales of 2024. So we intend to sell a volume that is close to that amount to keep a good balance, and André is going to talk more about that later on.
What we've seen with growing yields, there is a 13% of yield for this year, and this complete plan for the end of 2024, we are going to report a yield around 12.8%, and we are very comfortable and confident about this figure, because most of the works are on their way to be completed, and we have a very interesting rate of pre-leasing. What have we been doing in terms of recycling? All the recent recycling we had, around BRL 1.6 billion in the past 12 months, they reached caps around 8%. We have felt an increase in liquidity and an increase in the search for these investments. There are domestic investors looking for large assets.
We have been approached more and more by these players for the purchase because we have, after all, been very incisive and emphatic in our approach for sales, and we are really confident that we're going to deliver a cap close to what we reached last year. So now, the new yield reality in a stable cap with this compression trend, we will likely reach 40% of gross margin. I'm not sure if we have a slide with a list of the works, perhaps the next one. Okay, at the right time, we'll talk about it. So as Sérgio said, the growth will happen because of this investment, around BRL 850 million, around that figure. This will have a funding related to recycling. We see this movement as a recurring thing throughout the remaining part of the growth cycle, and there's an assumption behind it.
We want to keep the ceiling of our debt around BRL 700 million, up to that figure. I think it's very, very important, and it goes to show the work we have been doing in the past 12 years. We can show that even that we had a reduction of 24% in regards to the build area, we had a significant decrease of our net debt, and that gives us a very solid balance so that we can carry on with our growth cycle, executing our strategy. Going back to the planning for 2024, what do we intend to achieve? A net growth of build area. This delivery I mentioned earlier, more than 700,000 sq m , and after the sales of around 250,000, we will get a 32% net growth in build area. Very relevant.
We are growing the company in a very relevant and robust manner, and these projects are reaching a new level in terms of tickets, so our revenue is going to increase even more. These are works that are very well advanced and with very good leasing rates. And again, projects are approved, the works have been contracted. Pre-lease, there are no surprises and no alarms here. With that, talking about the accountability of the plans we launched in 2020, we initially began with a plan that's called, translating to English, All for One. Marcio said that we reached that figure by the end of this year, and we are planning to reach a little bit more than 1.5 million sq m. Like we said previously, we are feeling comfortable, we're feeling confident to do that.
We managed to do that because of the recycling activities so that we can keep on generating value. So once we ensure the delivery of the plan by the end of the next year, let me give you a perspective, what are the main financial highlights when we talk about the beginning and the end of this plan. Regarding the results, the lease, revenue, and EBITDA, when we see the stabilized portfolio, we will present an EBITDA growth rate of 100%. Back in 2020, we said that the execution of this plan will allow us to double the revenue, and this is exactly what we are delivering once this portfolio is stabilized.
When we look at the balance, the asset balance of the company, P/L and P/VP indexes, once the portfolio is stabilized, there's a trend to reach 50% here, and I find it very relevant considering the position regarding our portfolio that we have.
Well, when we talk about our main initiatives on ESG, as Marcio said about energy, we are 100% based on renewable energy. Our practices are about the new market. We follow the new practices on leadership, but I would like to emphasize the social aspect of our fronts, of our initiatives. Log Social. Log Social, it bring us back to tell that our operations, they are installed metropolitan regions, with problems, needy regions on the city. We look for these regions to identify the necessities, the social necessities of the clients that operate with us. And on these neighbor communities, for us to bring back, bring the opportunity, professionalizing courses and initiatives to train people to bring them to the work market.
We have space in our operations, courses from in our operations of some equipment and basic education, math, Excel program. We present along this time 70,000 hours of education for this population, for this needy population, with more than 100 certified students. 70% from our works that are working in our real estate or condos, they are really close to these needy regions, that these poor regions that where we have our operations, have a very dedicated team that looks to identify what we can do, how can we support this population of our client. This generates keeping this client, improving the environment. This a sense of being part of something. We have the, we bring opportunity for these excluded communities. The neighbor communities also come to the work market through us.
When we talk about the diversity, the type of people that are providing this kind of education, and how these people, they feel included in the society through us. Log Social got an award as the best social project by GRI Awards. We have the recognizing, we treat these projects with lots of care. We have a vision that the main indicator for us is that we're going to get there when we have, like, this training, these hours of training, these lessons for these co-excluded communities, where we can be close, sufficient for the ABL that we want to reach. The social aspect of our projects has a dedication, a very big dedication, where we can see the participation of the community and see this front of benefits on the ESG aspect.
I'm going to give the floor now to Sérgio, for us to talk about this new cycle of growing. People, the big message from us today here, we're finishing this plan. We're going to finish this plan till the next year. We're thinking about the next growth cycle. We're talking about this growth cycle in between 2025-2028. We want to deliver 2 million sq m of LOG in these three years. How did we model this growth? As Guilherme talked before, LOG has a demand in many region geographies in Brazil, have a big portfolio of clients. We know where they want to grow, we know where they are installed. We are operating on these places. Our idea is to improve the quality of the service for the client.
Quality is going to be a big aspect on growth. We're going to have e-commerce as well. We see demand for e-commerce for the southeast region of Brazil. This platform organize themselves to have more efficiency on the delivery in big regions in Brazil. This tripod that we talked about before, is a key aspect to deliver that, this plan. We're not able to do this volume of ABL with we are not present in so many cities. We're going to deliver on these opportunities around the country and the diversify on sectoral diversification. The dynamic of absorption of the company on the last years, e-commerce is stronger now, is where we have more leads. Pharma is also renting a lot. This bring to us a bigger base of clients with the modulation aspect of our projects, and we can have more demand captive.
This is the background on our plan. As I said before, this plan, we're going to invest in 22 regions in Brazil. Very important to emphasize that we have a project in all of them. We know how they work, the type of modularity, the type of sector we are absorbing, the volume of absorption by year. When we modeled this project, we did consider what can we deliver in every geography, and the volume, and the speed of delivery. We have to talk about the consumption. Consumption on those places, these geographies, the level of consumption they have there, has big demands. Well, the idea is to deliver a third of this project on the Southeast of Brazil, a third of the Northeast, and the rest in the other regions. Please go back, one slide.
On these 2 million sq m, we have already with us on the acquisition of land, we have already the ABL portfolio. We're going to be... The first projects we're going to deliver on 2025. We're going to go to the market to buy more. We're already doing this work. We have mapped many areas on where we are negotiating. We're going to do this work on this years to come. The funding strategy that we have here, we are executing this strategy on this cycle of growth. We're talking about BRL 3.5 billion of investment, that is going to come from our recycling, BRL 2.8 billion, and to talk about a yield of 12.7%. This data, we want to deliver with consistency on this deliver, this data. We're talking about growth in function of dilution of ESG&A.
With that, have this recycling plan to going to fund this plan, we see a potential of net growth in 70% along those years, getting to 2.8 million. We are talking about a comfort that we have here. We have the capacity to deliver that, along this period, on 2028... 2024. We see a very positive bias on this long-term plan, where things can change, but we see that in the very complicated scenario that we have on the last 12 months, we were able to have a CapEx of 8%. We are able to bring some-- that's how we can keep this 70% growth in ABL.
Now, from the point of view of having this presentation, showing accountability of our growth model for the next years, and also thinking about information about what's yet to come, what we're going to do after 2024. Now, we're open for questions, for questions that you might have, please. We remember that these questions can be done online. We're going to answer the online questions, and now we are here available for questions, any questions you might have.
Thank you for your presentation. I have two questions. From the same thing, when we talk about the depth on this market, are we talking about liquidity here? This accelerated sell strategy, you were able to sell good and quick, and going ahead, we should keep the same level of liquidity, BRL 1 billion a year.
This is the limit, or can we get to 2 billion-3 billion? How do you see the depth of... You're talking about recycling?
Well, what we've planned is to bring CapEx, to have this ABL net growth, to marry CapEx with recycling. This is not written in stone. If we have a sector that will have lower... We can do more. We are in a level, a yield level of low interest. We can look for this place where there is a lower rate interest. If we have-- where we see places we can have a higher liquidity, higher yield, we're going to go there. We have two vehicles on the real estate investment fund, where we are in place to buy some assets. We can do movements on, movements on FIIs.
What we wanted to do on planning this plan is to keep a stable balance, to have a stable growth, marrying putting together CapEx with the recycling, but nothing stops us to do a more intensive robust recycling, depending on the market and liquidity and cap rate. Great. Another question is, when you think about the debt of the company and the raising of capital, if you have a window for capital in a scenario, the idea would be raise grow this expansion plan, or having the possibility to capture more resources, you would reduce the assets that you are selling to do the same plan. We're not working in a scenario that has equity on the level we have today. We. This is not on our table. That's not what we're going to do short term.
We are planning with the funds we have available to us, that is recycling. For sure, eventually, if this scenario changes a very positive way along this plan, we can have the opportunity to do that, that you said, but that's not our plan. We want to keep our growth through, through recycling. Another question?
Andre Mazzini here. When you talk about this graph, about the cost, through the pandemic, you have good results. Please, talk a little bit about how were you able to do it? When you have this advantage in cost, the company had since the beginning, when we're talking about MRV, you were able to have this lower cost under the inflation. And now, what are the new factors which can possibly you making this? I'm talking about the scale here, about mid-term.
What would be the cost of construction cost in million of cash for square meter without land? Well, let's go.
Thank you for your question. Why were we so efficient? We can talk about what Rodrigo said. We have standards projects, the same project everywhere in Brazil, the same team doing this construction. The supply chain is a very strong supply chain. We have a very wonderful supply chain. That's very important. The same lights we put in Belém, we put in the south of Brazil. We buy big volumes of lights, so that's the DNA. The company was born on the biggest cost controller in Brazil. This helped us a lot, process and the focus in construction.
Along this year, the growth or scale, more standards, more standardization, we were able to reach that. More stability on the cost. We were able to have great cost. Ahead, we don't see pressure on this aspect. We believe they're going to keep a very stable cost. Maybe going under the NSCC, maybe around BRL 105 reais per sq m. When you talk about ticket, that's how we reach our yield above 3%. Good morning.
Good morning. Thank you for your presentation. I have two questions. First, when we talk about the, our competitors, who else is doing like warehouse real estate? We see during the pandemic, a very high competition in the São Paulo market, but you are very diversified where you, you build.
When you talk about the buy of land, looking ahead, if you want to buy with cash, swap, how do you want to do this acquisition of land?
Thank you, Fanny, for being here, and thank you for your question. When we plan, 2/3 is permutations, and buy. This has impact in the, our cost. When we talk about our lessees, they want to do better transactions. What is going to define that? If we want to buy ... The condition of projects, tenants, this all goes in the consideration. We can buy or we can go on exchange. Why are we buying this 2 million sq m? We have already 2,600, and we have already here, we're going to acquire that with exchange and buy.
Well, some places, Belo Horizonte, for example, we have BRL 330 reads per sq m. When this happens, we have some people going after BH, some competitors going there, trying to insert themselves in this market, looking for opportunities of investment. That's only Panto, only very strong places where we have more other bigger players looking at it. That's not happening in Brazil in a national level. Nobody's doing it. Proposing the same, type of growth in more than 20, relevant places in Brazil. We understand when we talk about our competitors, is the warehouse class B, is they are our competitors, and It's not about, market growth. We just take, a bad installed client to a better warehouse. That's what we do to improve their cost, having a more efficiency in their business with a better warehouse.
We understand that this movement of improvement for the market on real estate investment funds; we're moving this direction. We see this happening in other places, other investment funds doing their own investment, and this. We don't worry about that because we have more. Nobody has what we have, this machine that is able to build warehouses, that nobody can build a better warehouse so cheap like us. When you add everything, this commercial market, this, the client knowing us, knowing what we're going to deliver as a product, how is going to be the relationship with us, this make a big difference.
This added to this, what André said, Log Social, this can be scalable. We see a NPS comment on the client, on the capacitation we do, the training we do on the collaborators, the employees.
We see this growth on close to 100% and give more price to the client. Nobody can do it the way we do. We invest on Log Social, and we are making profit there, investing in people. We're having an online platform where we give more service more than anyone else. We can retain, keeps clients. There's a big issue when the client look at on our competitors. For sure, we map all- everything our competitors are doing, but that Panattoni they will not worry about it.
Okay, just to add a comment, Sérgio, regarding the competition, I believe there are some aspects that show that we are not facing such a competition outside the southeastern region. It's not necessarily cheap to obtain funds for this kind of activity, especially in places where other companies don't know yet how to do it, so I find it an important aspect. Secondly, as we showed you, we build for less. We are less expensive, so that enables us to advance further. Meanwhile, intrinsically, we show that our client portfolio, the portfolio we have in our condos, is perhaps the greatest obstacle for the entry of competition, because 70% of our expansion movement come from our client base. So these are important aspects that somehow end up affecting the competition. Considering the low quality infrastructure throughout the country for logistics, we-...
see and believe that there's a lot of room for growth, and I don't think that competition would prevent us to deliver what we have been delivering so far. I'd like to contribute a little bit. I am slightly obsessed about intelligence and information market. When we go around the country, you know, people understand how we sometimes stop at a region and go to three or four cities around it to see if a project that was being designed has finally started its construction phase, if there are plots of land taken, and this generates the obstacle that André just mentioned for the entry of the competition. Clients themselves, clients, they anticipate themselves and give this information to LOG. So when see a movement by the competition, looking for new areas, then they are going to go to some land that LOG has already mapped.
They are going to reach a client that has already demanded operation from us, and our commercial team is working with. So it's really hard. It's not impossible, as we said. We are seeing some potential activities by the competition, but it's really difficult outside the Rio and São Paulo region to find something that someone at Log doesn't know at all. This is something that is really important, that favors us, and the work that we do in market intelligence, it goes to show just that. When we go to other locations again, we find the competition going to certain regions, but they don't really start. We see the results of what we do differently, and the fact that most of the assets are delivered almost fully leased, and they are delivered under record-breaking periods.
So this goes to show the work that the commercial team does, going after the information at all the ends and contributing to what André just said in his answer to your question. Okay. Thank you. Can you hear me well? All right. Let me understand the low cost dynamic. You reached around 13%. Do you believe that this is sustainable level? Do you believe that it's possible to reach higher gains, maybe in a scenario with a better controlled inflation rate? Thank you for the question. Yes, we do have see a potential for increase. We planned for this long-term plan, an average yield of 12.7. The regions we are working at, the pricing of each moment, we don't see a cost pressure, as I said, but we do see a positive pressure on pricing.
So eventually, we may increase these figures as we are doing this year. The blending reached 13.2, a very robust figure, and forward-looking, we intend to reach 12.7. And when we see this drop in interest rate, that should happen in the next year, that should increase the spread, but there might be also a trend for price rises in commercial aspects, not in CapEx. Thinking about a slightly more difficult environment for recycling, what do you say? What we have modeled... Well, Andre said that 2025, there, there's going to be a ceiling of our debt at BRL 700 million. We don't want to exceed that, and we want to see how it's going to be the easing of this cycle.
But later on, we are keeping a debt ceiling, and we are reaching the peak, and we are not going to exceed four times the net EBITDA per site. So this should match the CapEx and help us to keep a peak of net debt per EBITDA. And several other recyclings will also take place, and we tend to maintain them at lower levels if needed.
Hello. To your right, I am Sergio Bruno. I work for Bradesco BBI Fund. Thank you for your information. It's interesting to see the projection of new deliveries for the following years. I'd like to see if you can tell us a little bit more details about the construction of this plan. I understand that 500,000 per year.
This is my first question: Do you understand that this is, an interesting figure, and how do you see the possibilities of Built-to-Suit? In this plan, we understand that historically, Log gave privilege to speculative assets, but there are some Built-to-Suit in its recent history. So how are you breaking down this plan from now on, and how this plan is worked on the capacity of the company? You used to say that the capacity that you're comfortable with, but do you understand that you may need investments on corporate infrastructure so that you can run more smoothly with this plan. Thank you for the questions, Bruno. Let me start about the construction capacity. I was talking about the planning for the next year.
In the next 15 months, we are going to deliver more than 400 sq m of gross leasable area, and we have around 2,000 staff working on several works, construction works around the country. You understand that there is no commercial bottleneck. We have in-house more than 1,600 sq m of GLA, and we are really cool with this process. We are able to do it, and these are not things that we haven't done before in terms of leasing and construction. We will have to expand the LOG ADM staff, but as Andreas said, we see a trend of dilution of G&A as we deliver these new GLAs. Well, talking about where to invest, we have taken 400,000 that were in-house, and this is the mapping. We will be two different places, cities with more than 1 million inhabitants.
We have done mapping at these regions. We know that some clients require expansion. 100% of retail projects, modular LOG projects. The BTS we intend to do now, we are becoming more and more restrictive about it. In spite of great liquidity for BTS assets that we sold in this past cycle, we can reach a better yield in our retail activities. This movement, a park with 30 clients, someone that is leaving, but new clients arriving, and we can work on prices, as we've shown in the positive leasing spread of the past 5 quarters. We are working, always working and studying our BTS. Clients require that, but for us to invest on it, there must be an interesting return on investment close to retail. We should analyze case by case.
We need to find a local market that will demand if that BTS is no longer there. So we are studying some BTSs in large regions around the country, and then we intend to lease them for our retail clients. These are important aspects for us to make our decisions. In our plan, we don't intend to work on BTS, but we definitely work on them. They may represent an increment, as we mentioned in our plan, All for One, and we are working on adding BTS throughout the plans as we did. We don't want to really talk about it, because our focus is on the return on investment from our retail activities.
Mateus Meloni from Santander Bank. You talked about pre-leasing. I'd like to understand, what is your view regarding this trend? Do you believe that pre-leasing rates will decrease or not?
How do you see these pre-leasing rates around the country? How do you face that?
Thank you for the question, Matheus. We delivered 415,000 sq m of GLA, and they have 100% pre-leased. This year, we delivered in the second quarter, 600,000 sq m ... No, 60,000 sq m of GLA, around 80% pre-lease. So we tried to match the absorption at each region, at each place and some other aspects. It's clear that maybe that's not going to be the reality from now on, but the planning for 2024, these more than 700,000 sq m, we have 30% of them already pre-leased. These are works that will be delivered one year from now, and they have a very robust pre-leasing rate.
So we are working with our modeling, and what we intend to have in our growth plan is the leasing of these assets 12 months after the delivery date. And we are working on the commercial side, trying to improve the pricing. Guilherme has been doing that with our team, so maybe the following pre-leasing rates will not reach 100%, but I am sure that we will be considered throughout our growth cycle. Hello, good morning. My name is Aline. I work for Bank of America. My question is related to the commercial area. We have seen in this retail discussion the increase of relevance of Chinese companies. This is an interesting impact and relevant impact to Brazilian companies. Do you see this trend?
In what light do you think it will impact your business model, considering this growth plan, and do you see this new growth vector as an opportunity or a threat?
Aline, thank you for your question. We are planning to capture part of it. These are additional demands, absolutely. You see major Chinese companies closing operations. They have just closed a deal, the largest one in São Paulo this year. We see some of them kind of adopting a sort of a LOG model. It's not big box we see in São Paulo, but 5,000 sq m-10,000 sq m spread for the country, and we see that they need the efficiency and delivery, and we can deliver that to them. So we are planning, we see, and we have closed some operations with this sort of clients. There are new talks ongoing.
We believe this will likely to grow in terms of capillarity. They need this capillarity, and this represents an additional demand. As we said, e-commerce isn't dead.... E-commerce will keep on growing outside the Southeastern region. It won't reach the same level as we saw during the pandemic, but what we know and feel about regions far from the Southeastern, there are players who require this capability in terms of delivery, and we intend to be there to deliver it to them. Thank you. Hello. How are you doing, everyone?
Thank you for your presentation. I have two questions. I'd like to dive deeper into this 1.5% rate, which is a very interesting level, and you mentioned also the 13% of yield on cost. Do you see this 1.5% as the possible increase?
I would like to understand this actual leasing rate, how do you capture this gain? The second question is, I'd like to know more about the client mix. If you've seen a reduction of the concentration on e-commerce, and now you are seeing an increase on pharma companies or food and beverage companies, do you see that you have perhaps a comfortable percentage in terms of a specific mix? Let me start by the second question. It has to do with our business model, the geographic diversification and the industry diversification. There is no client or industry that has a major concentration. If there is, we may use recycling to adjust this portfolio. This is something we have been doing. We don't have a great retail exposure. There were some recent events, such as eventual problems by some companies, but we are not affected by that.
We are going to keep this model. Modular diversification is more operations and geographic diversification. Let me go to your first question. This yield forecast for 2024, this is a yield, as I said, we have good levels of pre-leasing, and we are considering the ticket of what is being leased. We are not considering future growth. If we can improve the prices and see this trend of yield of already delivered projects, then we are likely to grow there. This positive spread of lease, this represents the operational portfolio. There are two things happening there. There are clients that are renewing and are remaining with LOG for many reasons, as we mentioned before, around 100% of renewal, then we can improve the prices. We can show them the average ticket of parks somewhere else, and then we can improve.
Then there is also situations of turnover when a client is leaving, a new one is arriving, and then we can also improve the price. The trend is for us to improve the average ticket as this. We see this benign scenario of ticket improvement, we can call it, is perhaps here to stay for a while. Thank you. Good morning. I have two questions to ask you. For the future recycling, do you think about using a similar structure in terms of sales? We talked about that there are real estate investments taking place with the payment being done, investments. Do you believe that this structure will be kept or with a drop in interest rates, things are likely to change? Second question, considering GLA or revenue, do you think that instead of keeping this expressive growth, perhaps you could focus more on dividends?
This would be my second question.
Thank you for your questions, Geraldo. Let me start with real estate funds. They will be an important part to the decision-making process for us. We have just done an important transaction with a major player. We don't want to place our bets on a single horse. We want to diversify. There are two interesting cases. We are working on the management of property as well, and when we have a retail park, which we believe it very much, we don't want to leave it to the market. We want to keep things close to us. We can keep the management of LOG ADM, the commercial management as well, and there is a leasing fee that is growing. So this is the trend here. Talking about liquidity, it has been increasing.
We see differently from previous and recent transactions where we had 50% of a down payment. We are now seeing players willing to pay higher down payments, and we can also discount from their dividends and work on these installments, and we are willing to do that. For us, that is part of the game. But the increasing trend in improvement of the installment of such liquidity...
Yeah, I'd like to talk about dividends. Yeah. So we currently have a policy that we paid minimum mandatory dividends, and we are in a growth trend, and the resources that are being generated by the company are applied in the company itself. But thinking about the culture, the future, sorry, there is an interesting growth cycle to go through. So-
I think that this is something, it's not being necessarily discussed with the board, but I think that in the future, if we are able to generate from our own activities, leasing activities, the necessary resources for an expansion, then I believe that we might review one of our policies or a distinct distribution from what we have been currently doing so far.
Good morning. Renato from Santander.
Thank you for your presentation. I have a question that's, more curiosity. Some sectors that are already following. People talk about very long-term planning. B2C, B2B, we need so much percentage. Or there is any driver for those cases where we talk about, retail, size of economy that we have in Brazil?
The most interesting aspect on our business model is that we don't need, if the country grow 3%-4% every year, we're going to have more demand. But the modeling here, what we see on daily life, the biggest drivers, the two drivers on the growth is e-commerce and warehouse quality. This connects the PIB to GDP in Brazil. We have people need to have better and cheaper warehouse. We don't need to increase our volume. GDP growth to have this demand, to attend this demand. When have this crisis years, 2014, we were able to deliver other areas where we were able to during the crisis period, people are looking for the efficiency in operations, reducing costs. Our warehouses permit that, and we have this connection to the GDP. The economy tends to grow.
A big economy has – is going to have a consumption that is going to really help us, and we are considering that for the future growth. We don't have a statistic data in big volume. Don't have that yet. When you compare our country to other countries with the same dimension that we have in Brazil, Mexico has three times more Class A warehouse than we have. We have a geographical favorable. They're close to USA, that help this number there for them, but we have. Texas is as big as us, and this step-by-step growth is going to happen. Eventually, we're going to have something more exponential in a positive scenario when we are optimistic and when our economy make this possible.
We have a lot of opportunity for growth, but we have that—we don't have that in a concrete way, because of our low capacity to generate data in Brazil. Hello. I would like to do a provocation on the line, on the question our colleague here made on dividends. Let's talk about rebuy. When you see people negotiating with discount on the value of their assets, if you look at for project caps, it looks interesting when, when the interest rate is closing. I would like to understand how buybacks or the potential re-rebuy happens, and your decision process to make a plan of expansion, and how CapEx in new assets is competition with the potential rebuy of, on the yield cost that you're looking at, when you talk about rebuy of shares, how do you see that? Bruno.
We did we moved ourselves on the buy of shares. This protects the value of our stocks when we we're moving in this direction, buying stocks. But what we do with these stocks? Our treasury department now is going to discuss with the board, but that's we see recurring in a way to address generating of value, of income for our shareholders, thinking on our liquidity. And we look, we think about it, how can we increase our income on those aspects? It is a very important aspect for the management team here, and connect to the stabilization of our routine, of daily procedures, workflow, where we follow our action plan and the opportunities. This is going to be aspect of our work, and we're going to decide what we're going to do with the stocks we have now.
If we're going to keep doing this movement, when it makes sense. Here, we consider we are not only treating this in a concrete way, on the way we generate resources on the recycling. That's how we are going to reinvest our resource on ourselves. But you, you talk about very interesting point. That's the intention we have. How do we address that? We look out at the papers and have the capacity to sell assets. As with income, selling BRL 1.6 billion, if you look at the distribution it was better to sell everything and give back the, the money to the shareholders. But we are thinking about, long-term company, where LOG want to be in 15 years, being a relevant player in the sector, a player that have a very big portfolio of clients and have to think about all these variables.
We have to see it, to think about the growth of the company and what the shares, stocks mean today, and for our growth in the future. Any more questions? Anything? Well, we're going to take this opportunity. There are some questions here through the chat, and we have a question that is connected to the dividend aspect. We answered that already. A question from Marcelo. We have another question from Carlos: What's the marginal influence you have today on your selling, on the real estate market? And the other one is: Which is the impact of the, when we talk about the change of the. When we understand, we have to discuss the tax reform we're going to have in Brazil, how the tax reform is going to impact our work.
We are monitoring which direction this tax reform is going, and which scenarios we can have and how this is going to impact our business. I believe that we are going to have an impact there, but have to wait how this is going to happen for us to analyze how this tax reform is going to be in concrete way for us to take our actions. It's not a point now to talk about the impact of this tax reform in our business model. These are the questions we received online, and open again for questions. If anyone has any questions, please, we are here. Just to close it, I have a question. When you talk about LOG ADM, could you comment on how this strategy on the revenue there, if you have any additional project there, if you guys could what was invested in Log Shop?
How do you think about this line of service? How relevant is this on the business plan of, of the company? Mateus, we cannot answer that now. Interesting. But our clients today, they give a series of services on our condos. What we want to bring to them, there's some additional service by the stability of our business and integrating. We're starting now, bring that on our shelves. We're closing big partnerships with suppliers, and we have thousands of forklift trucks, thousands of truck lifts that are being rented by our clients. We bring these partners where we can improve service and cost. The client is going to see value there. That's what we're doing, but it's hard to plan and see how is, how are the projections in this sense.
On LOG ADM, as Marcio said, is a unit of a very important business unit. We have a 50% of revenue there, retaining clients. We have 30%-40% of our portfolio on LOG ADM, on third party that we are demonstrating. We see a possibility for growth there on this recycling LOG ADM, and see also increase in the absolute value. When we talk about 2024, we see added revenue, BRL 12 million on services beyond our platform. Well, I'd like to thank everybody for being here. It's a pleasure to talk, to see everybody. In the last years, I didn't have the opportunity to talk face to face, one by one, many times, and now is the chance for us to be here face to face, to talk.
It's, it's important to talk about the future. It's a privilege for us to have you here. Thank you. We are here available for... Let's move forward. Thank you very much. Thank you.