Log CP Announces Share Buyback Amid Unattractive Real Estate Investment Moment

On Friday, July 5th, a sunny day, B3 saw over 3 million stock trades, with more than R$ 20 million in transactions. On the same day, in Belo Horizonte, Minas Gerais, Log CP announced, by statement, the repurchase of 5.5 million company shares.

This is not the first time the company has made such a move. In February 2023, Log CP announced a share buyback program, during which 3.4 million shares were acquired. That operation ended on the 5th to make way for the new program.

André Luiz Vitória, Executive Director of Finance and Investor Relations, explains that after a good period for the development of high-standard assets, the capital market is not favorable for real estate companies. Thus, the share buyback helps to demonstrate confidence.

“We are currently experiencing a great period in terms of developing Class A assets, with returns at record levels. The capital market has significantly discounted the shares of all companies in the real estate sector, which are undervalued compared to their fair value. In this context, the buyback also aims to show our shareholders our confidence in our business model and the potential appreciation of our shares,” said Vitória to REsource.

Vitória explains that this operation aligns with the goal of reaching 500,000 m² by 2028. According to the executive, Log CP's market value is R$ 2.5 billion, and the share buyback will positively contribute to these numbers.

“This is another way to ensure shareholders—and the market—that we are 100% prepared to meet the goal of delivering about 500 thousand m² per year until 2028, which represents almost 25% of all new projects planned in Brazil. The investment will be R$ 850 million to R$ 900 million per year. Since the beginning of this year, Log's shares have already increased by 12.7%, resulting in a market value of R$ 2.5 billion. This buyback should positively contribute to our shares,” Vitória concluded.