By Brazil Stock Guide – JHSF Participações SA reported a sharp rise in second-quarter earnings, underscoring the strength of its diversified portfolio in Brazil’s luxury real estate and services market. Net income attributable to shareholders reached 245.8 million reais ($46 million), up 45.6% from a year earlier, according to figures published by Valor Econômico on Friday. Revenue rose 25.2% to 496.1 million reais.
Earnings before interest, taxes, depreciation and amortization (Ebitda) totaled 347.7 million reais, a 59% increase from the same quarter in 2024. Adjusted Ebitda, which excludes property investment appreciation, rose 21.9% to 247.2 million reais. Chief Executive Officer Augusto Martins said 61% of the adjusted Ebitda came from recurring income assets, demonstrating “risk diversification and proof of a unique ecosystem.”
Debt and capital structure
JHSF operates in residential development, private aviation, shopping malls, high-end rental housing, clubs and hospitality. It ended the quarter with net debt of 1.57 billion reais, up 39% from a year earlier. The company’s net debt-to-annualized adjusted Ebitda ratio was 1.78 times, which Martins described as “comfortable” and well below the contractual limit of 0.60 times in relation to equity.
Over the past year, the company raised 2.9 billion reais in capital markets to extend maturities and cut its average debt cost by 66 basis points to CDI plus 0.98%.
Performance by segment
- Shopping malls: Net revenue was 96.9 million reais, up 0.9%, while net profit plunged 78.7% to 14.9 million reais due to the sale of stakes in malls in Manaus and Salvador in 2024. Sales climbed 17%, led by a 27% gain at the Cidade Jardim mall. A 6,000-square-meter expansion is planned, including a Chanel flagship and larger Dior, Prada and Tiffany&Co stores.
- Hospitality: Net revenue rose 16.1% to 115 million reais, with net income up 109.3% to 4.9 million reais. Average daily rates increased 15.9% to 4,100 reais, while average restaurant checks grew 7.8% to 348 reais. This month, JHSF will open a Fasano restaurant and beach club in Sardinia, Italy, with a hotel set to open in 2028.
- High-end rentals and clubs: Net revenue soared 105.6% to 38.7 million reais, with net income of 136.6 million reais compared with a 9.9 million reais loss a year earlier. The Fasano Tennis Club will open in the third quarter and the SP Surf Club in the fourth, both in São Paulo.
- Catarina Executive Airport: Net revenue climbed 47.8% to 65 million reais, with net income up 137.1% to 42.2 million reais. Landings and takeoffs increased 64% and fuel volumes rose 54%. The number of hangars will expand from 12 to 16 by year-end.
- JHSF Capital: Net revenue rose 1.4% to 3.6 million reais, with a 400,000 reais loss compared with a 1.5 million reais loss in the prior year. The unit plans to launch funds for company assets, starting with malls and real estate development.
- Property development: Net revenue increased 22.9% to 166.1 million reais, with net income up 9.4% to 105.9 million reais. Sales totaled 293.8 million reais, up 6.6%, with no new launches in the quarter — a strategy aimed at creating product scarcity.
Outlook
Upcoming projects include Boa Vista Estates, in the Boa Vista complex, and Fazenda Santa Helena in Bragança Paulista, both set to launch in the second half of the year. The pipeline also features towers linked to the SP Surf Club, with an estimated gross development value of 2.3 billion reais.
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