CYRE3

Cyrela Brazil Realty S.A. Empreendimentos e Participações is one of the most established 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 founding 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., focused on in-house project construction, and Seller Consultoria Imobiliária e Representações Ltda., dedicated to commercialization, allowing for greater integration of the value chain. In 2004, Cyrela Securitizadora was set up, expanding its role in real estate financing and in issuing Real Estate Receivables Certificates (CRIs). 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 merger of RJZ Participações e Investimentos Ltda. expanded its activities in construction, development and sale of projects in Rio de Janeiro. In 2007, the company carried out a partial spin-off of assets linked to corporate slabs, shopping centers and management of commercial properties, giving rise to Cyrela Commercial Properties S.A. Empreendimentos e Participações (CCP), focused on the income-generating properties segment. In 2009, the merger of Goldsztein Participações S.A. consolidated its presence in Brazil’s South region, with Goldsztein Cyrela maintaining local management for businesses in Paraná, Santa Catarina and Rio Grande do Sul. Over the following decade, Cyrela began using 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 stakes in other entities. The operating structure is divided into two main business lines: development activities, which account for the sale and resale of properties and land subdivisions, and service activities, which include management of receivables from partners, brokerage, and management of construction works and condominiums. In 2024, consolidated net revenue was largely generated by the development segment, with emphasis on projects under the Cyrela brand, followed by Living and by projects framed within 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 locations in major urban centers. The Living brand operates in the mid-range segment, serving middle-class demand with mid-level projects and a more accessible ticket price than the luxury segment. The Vivaz brand is dedicated to the affordable segment, with developments framed within 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 developments accounted for 55.33% of net revenue, while Living represented 32.65% and MCMV/Vivaz 11.95%, highlighting the importance of the high- and mid-end segments in revenue generation. The services activity, classified as “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, focused on mid- and high-end projects in São Paulo; SKR Engenharia, for projects on land sourced locally in São Paulo; and Cyma, geared toward mid- and high-end projects in the same state. These joint ventures have allowed the company to diversify its exposure across income brackets and geographies, while keeping risk under 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, maintaining strategic influence without fully consolidating their results.

Cyrela’s real estate operations are fully concentrated in Brazil, with no material revenues 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 barter transactions, either in physical form (future units delivered to the landowner) or financial form (a share of the project’s results), reducing upfront cash outlays and increasing the number of simultaneous projects. The development of each project involves architectural design, marketing studies and pricing strategy, with input from engineers, architects, brokers and commercial teams. In construction, the company operates both organically, with direct site management and contracting of specialized subcontractors, and through projects built by partners or contracted builders, under the supervision of in-house 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 located near the construction sites, with fully furnished model units and sales teams trained in customer profile, construction timeline and commercial terms. This model is designed to sustain sales volume from launch onward, still during the construction phase, supported by communication and relationship-building initiatives. The client base is highly fragmented, with no 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 pace of sales, the physical progress of works and the structure of financing to end buyers, which often involves the securitization of real estate receivables through vehicles such as Cyrela Securitizadora.

Cyrela’s activities depend on obtaining multiple government licenses and permits at all levels, especially municipal, for project approvals, building permits and certificates of completion. The company maintains ongoing relationships with city governments and state and federal agencies, in compliance with legislation on land use and zoning, historical heritage, environment, traffic and sanitation, among others. In the environmental field, the company adopts practices of prior land assessments 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 and was one of the participants in Sinduscon-SP’s pilot program for environmental management of construction waste, focusing on reduction, reuse, recycling and proper disposal. To date, it has not recorded any material environmental lawsuits or significant losses arising from environmental liabilities.

On the sustainability and governance front, Cyrela has produced annual sustainability reports since 2021, 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, focused on transparency regarding climate-related risks and opportunities, and SASB standards, with sector-specific metrics for the real estate industry. The most recent materiality analysis follows the concept of double materiality, considering both financial and social-environmental impacts, and highlights relevant topics such as workplace safety, customer relationships, 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 increase transparency on the company’s environmental, social and governance risk management practices, whose shares remain listed on B3.