CYRE3 Cyrela

Cyrela Brazil Realty S.A. Empreendimentos e Participações is one of the most traditional publicly traded developers in the Brazilian market, with shares traded on B3 under the tickers CYRE3 and CYRE4. The group’s origins date back to 1962, with the incorporation of Cyrela Comercial Imobiliária S.A. by Elie Horn, initially focused on the development of residential buildings and commercial offices, outsourcing construction and sales. The shift in operating profile began in 1981 with the creation of Cyrela Construtora Ltda., dedicated to in-house construction of projects, and Seller Consultoria Imobiliária e Representações Ltda., focused on sales, allowing for greater integration of the value chain. In 2004, Cyrela Securitizadora was structured, expanding activities in real estate financing and the issuance of Certificados de Recebíveis Imobiliários (CRIs, or Real Estate Receivables Certificates). The listing on the Novo Mercado segment of the then BM&FBOVESPA in 2005 consolidated the company’s position as a real estate development platform with access to the Brazilian capital markets.

Cyrela’s growth trajectory has been marked by acquisitions and corporate restructurings that strengthened its regional presence and product segmentation. In 2006, the acquisition of RJZ Participações e Investimentos Ltda. expanded its operations in construction, development and sales of projects in Rio de Janeiro. In 2007, the company carried out a partial spin-off of assets related to corporate slabs, shopping malls and management of commercial properties, giving rise to Cyrela Commercial Properties S.A. Empreendimentos e Participações (CCP), focused on the income-producing properties segment. In 2009, the acquisition of Goldsztein Participações S.A. consolidated its presence in the South of the country, with Goldsztein Cyrela maintaining local management for business in Paraná, Santa Catarina and Rio Grande do Sul. Over the following decade, Cyrela began to use minority stakes and joint ventures as a means of expansion and diversification, including significant investments in Tecnisa S.A. and the structuring of partnerships with other regional developers.

Cyrela’s business model is primarily based on the development, construction and commercialization of residential and commercial properties in Brazil, targeting different income brackets. The corporate purpose of the company and its subsidiaries includes development, purchase and sale of completed or under-construction properties, land and ideal fractions, leasing and management of real estate, construction of projects, provision of services related to the real estate market, and equity interests in other entities. The operating structure is segmented into two main business lines: development activities, which account for the sale and resale of properties and land subdivisions, and services activities, which include management of receivables from partners, brokerage, and management of construction works and condominiums. In 2024, consolidated net revenue was mostly generated by the development segment, with emphasis on projects under the Cyrela brand, followed by Living and projects under housing programs such as Casa Verde e Amarela.

The company organizes its product portfolio into three core brands: Cyrela, Living and Vivaz. The Cyrela brand concentrates high-end and luxury residential and commercial developments, targeting higher-income clients and prime locations in major urban centers. The Living brand operates in the mid-range segment, serving middle-class demand with intermediate-standard projects and more affordable ticket sizes than the luxury segment. The Vivaz brand is dedicated to the affordable housing segment, with projects framed under federal housing programs such as Casa Verde e Amarela (formerly Minha Casa, Minha Vida), aimed at middle- and low-income families. In 2024, Cyrela-branded projects accounted for 55.33% of net revenue, while Living accounted for 32.65% and MCMV/Vivaz for 11.95%, highlighting the weight of upper- and mid-range products in revenue generation. The services activity, classified under “Others”, contributed a marginal share of revenue and operating profit.

Cyrela’s growth strategy combines organic development with joint venture partnerships specialized by segment and region. Key partnerships include Plano & Plano, focused on the affordable segment and the Minha Casa Minha Vida program in the state of São Paulo; Cury Empreendimentos Imobiliários, focused on affordable projects in the states of São Paulo and Rio de Janeiro; Lavvi Empreendimentos Imobiliários, dedicated to mid- and high-end projects in São Paulo; SKR Engenharia, for developments on locally sourced land in São Paulo; and Cyma, focused on mid- and high-end projects in the same state. These joint ventures have enabled the company to diversify its exposure across income brackets and geographies, while maintaining risk control and leveraging local expertise. Some of these partners, such as Cury, Lavvi and Plano & Plano, went public on B3, at which point Cyrela came to hold significant minority stakes, preserving strategic influence without fully consolidating their results.

Cyrela’s real estate operations are entirely concentrated in Brazil, with no material revenue abroad. The production process begins with land prospecting and acquisition, a stage that involves technical, market and financial analysis, as well as studies of supply and demand, the region’s socioeconomic profile, and assessment of potential environmental risks. The company uses both cash acquisitions and physical swaps (future units delivered to the landowner) and financial swaps (a share of the project’s results), reducing upfront disbursements and increasing the number of simultaneous projects. Each project’s development goes through architectural design, marketing studies and price positioning, with the involvement of engineers, architects, brokers and sales teams. In construction, the company operates both organically, with direct site management and hiring of specialized subcontractors, and through projects built by partners or contracted construction firms under the supervision of its own technical teams.

Sales of new launches are centralized at Seller, the group’s in-house brokerage, complemented by independent real estate agencies. Launches are supported by showrooms near the construction sites, with furnished model apartments and sales teams trained in client profiling, construction schedule and commercial terms. This model seeks to sustain sales volume from the launch stage, still during construction, supported by communication and relationship initiatives. The client base is highly fragmented, with no material concentration in a single buyer accounting for more than 10% of net revenue, a typical feature of residential developers with diversified portfolios. Cash generation is directly linked to the sales pace, physical progress of works and the financing structure for end buyers, which often involves securitization of real estate receivables through vehicles such as Cyrela Securitizadora.

Cyrela’s activities depend on obtaining multiple licenses and government authorizations at all levels, especially municipal, for project approvals, building permits and certificates of occupancy. The company maintains an ongoing relationship with city halls and state and federal agencies, complying with regulations on land use and zoning, historical heritage, environment, traffic and sanitation, among others. On the environmental front, the company adopts prior land assessment practices by independent consultants to identify the presence of toxic materials or hazardous waste, often conditioning land acquisition on obtaining environmental licenses. Since 2005, it has invested in waste management at construction sites, having been one of the participants in the pilot program of Sinduscon-SP for environmental management of construction waste, focusing on reduction, reuse, recycling and proper disposal. To date, it reports no material environmental lawsuits or significant losses arising from environmental liabilities.

In terms of sustainability and governance, since 2021 Cyrela has prepared annual sustainability reports, disclosed to the market and based on Global Reporting Initiative (GRI) guidelines, with independent assurance by firms such as Deloitte and Bureau Veritas. Starting with the 2023 report, the company also began to incorporate TCFD recommendations, aimed at transparency regarding climate-related risks and opportunities, and SASB standards, with sector-specific metrics for the real estate industry. The recent materiality analysis follows the concept of double materiality, considering both financial and environmental/social impacts, and highlights relevant topics such as workplace safety, customer relations, talent attraction and retention, innovation and technology, community relations, climate change, cybersecurity and data privacy. This ESG agenda is integrated into operations in its main markets, including São Paulo, Rio de Janeiro and Porto Alegre, covering the Cyrela, Living and Vivaz brands and helping to provide greater visibility into the company’s environmental, social and governance risk management practices, whose shares remain listed on B3.