HBTS5: quote, dividends and indicators for Habitasul

Habitasul, traded on B3 through shares HBTS6, HBTS5 and HBTS3, traces its origins back to 1981 in Porto Alegre (RS), as Habitasul – Administração e Participações Ltda., incorporated by Companhia Comercial de Imóveis and its controlling shareholders Péricles and Eurito de Freitas Druck. The company was conceived as a holding company to reorganize and concentrate the share control of the companies that would form the Habitasul Economic Group, initially with a strong focus on real estate credit and financial services, as well as tourism, real estate developments, hospitality and the metalworking industry. Also in 1981, the company was converted into a publicly held corporation under the name Companhia Habitasul de Participações, with bylaws providing for the issuance of non-voting preferred shares and founders’ beneficiary parts, which were later converted into Class B preferred shares. In the early 1980s, the company structured the so-called Habitasul Financial System, including a commercial bank, leasing company, securities and insurance brokers, as well as transactions with savings and loan associations, becoming one of the main agents in the Brazilian Housing Finance System. The crisis in the national financial system in the mid-1980s led the Central Bank to intervene in the group’s financial institutions and, subsequently, to the sale of the banking arm to Banco Meridional do Brasil, preserving mainly Habitasul Crédito Imobiliário S.A. and the non-financial businesses. From that point on, Habitasul began to focus on developing real estate projects, hospitality, tourism, industrial activities related to wood and resins and related services, gradually redesigning its corporate profile.

Habitasul’s main activity in its current configuration is equity interest in the capital of other companies, acting as the operating holding company for a group of subsidiaries and affiliates. The group directs its investments mainly to the development of sustainable real estate projects, based on large land banks and the design of master-planned communities, generating revenue through urban development, property development, property sales, leases and related services, including hospitality and condominium management. The company also holds interests in industrial businesses, especially through a significant stake in Irani Papel e Embalagem S.A., another publicly held company active in paper, packaging and forestry ventures. The business model integrates the full cycle of real estate asset development, from urban and environmental planning to the sale of lots and units, combined with the provision of hotel management, food services, events and property management, which diversifies revenue sources between property sales and recurring service provision.

Habitasul’s operating segments are organized into two major blocks: Real Estate Business and Service Provision. The Real Estate Business segment includes purchase and sale of properties, construction and sale of residential, commercial or service units, development, subdivision, urbanization, preparation of studies and projects, as well as operation of water and sewage systems in Jurerê Internacional, in Florianópolis (SC). This segment is developed mainly by subsidiaries such as Habitasul Desenvolvimentos Imobiliários S.A., focused on products for middle- and low-income segments in the metropolitan region of Porto Alegre and in areas of the Serra and northern coast of Rio Grande do Sul, and Habitasul Empreendimentos Imobiliários Ltda., focused on the development of Jurerê Internacional targeting high-income clients. Other subsidiaries and affiliates operate in purchase and sale of properties, development of own assets, subdivisions, tourism and leisure activities, as well as shopping mall management and provision of condominium advisory services. The Service Provision segment includes hotel and condominium management for tourism use, resorts and hotels, mainly in Jurerê Internacional, through companies such as JI Administração Hoteleira Ltda., JI Gastronomia & Eventos Ltda. and Vale da Ferradura Turismo Ltda. Hotel management includes management of rental pools, condominium administration, food services, event organization and operation of retail spaces, generating revenues linked to management, occupancy and profitability fees of the hotel ventures. In the real estate segment, sales may be concentrated in a few relevant customers, and in a given fiscal year there were two transactions that accounted for more than one third of total net revenue.

Habitasul’s geographic presence is markedly regional, concentrated in Southern Brazil. In Rio Grande do Sul, the company operates mainly in the metropolitan region of Porto Alegre, on the northern coast and in the Serra Gaúcha, through urbanization projects, subdivisions and medium- and long-term real estate developments structured in phases based on specific master plans for each area. In Santa Catarina, operations are focused in Florianópolis, especially in the Jurerê Internacional neighborhood, where the group holds a significant high-end land bank and develops residential, commercial, hotel and urban service projects, including water supply and sewage services in certain sections of the development. Hospitality and leisure operations are also distributed between Jurerê Internacional and Serra Gaúcha, with operations and projects in Canela (RS). The company’s revenue is essentially domestic, with no significant contribution from foreign revenues, which reduces exposure to foreign regulation and direct risks from other markets, concentrating regulatory and demand risk in the Brazilian economic and regulatory environment.

The competitive environment in which Habitasul and its subsidiaries operate in the real estate segment is composed of large companies with nationwide operations and small and medium-sized companies with a regional or local focus. The strategy of holding large tracts of land for long-term development, especially in Jurerê Internacional and the metropolitan region of Porto Alegre, differs from models based on one-off, short-term launches, which makes direct market share comparison with competitors less relevant. The company usually establishes partnerships with developers, urban developers and construction companies in structuring projects, which dilutes operational and financial risks and softens direct project-by-project competition. In the hotel services sector, competition is more immediate and volatile, especially in Florianópolis and the Santa Catarina coast. The hotels managed by Habitasul face competition from leisure and event resorts and hotels, such as developments located in other coastal towns in the region and units of national and international chains. The businesses are heavily influenced by seasonality, with high demand concentrated in the summer season and during sports and corporate events, as well as by exchange-rate fluctuations, which affect the relative attractiveness of domestic tourist destinations compared to international options. Commercial strategies include presence on multiple online booking channels, account managers working in source markets in the South, Southeast and Center-West regions, and the use of revenue management practices for dynamic pricing.

From a regulatory standpoint, Habitasul’s real estate activities are subject to a broad set of urban planning, environmental, registry and tax regulations. The development of subdivisions, developments and buildings requires approvals from municipal, state and, when applicable, federal authorities, including approvals for urban development projects, licenses for the start and completion of works, registration of developments and subdivisions at real estate registries, and environmental licensing. The company and its subsidiaries maintain ongoing relationships with competent authorities to obtain approvals, agreements, offsets and urban or environmental compensations, as well as any Conduct Adjustment Terms (Termos de Ajustamento de Conduta – TACs). Costs associated with environmental regulation include licensing fees, environmental compensations, implementation of degraded area recovery plans and compliance with legal and judicial conditions. The company does not depend on specific patents, concessions or franchises that are critical for the development of its activities, other than the usual licenses and authorizations required in the real estate and urban services sectors. There are no significant revenues subject to foreign regulation, and the company states that it does not make financial contributions to candidates, political parties or activities aimed at influencing public policy decisions, in line with its donations and sponsorships policy.

In environmental, social and governance dimensions, Habitasul has a formal sustainability agenda embedded in its business model. The company publishes an annual Sustainability (ESG) Report, prepared based on international frameworks such as the GRI Standards, SASB recommendations applicable to its water and sewage system, and aligned with the UN Sustainable Development Goals, with assurance provided by an independent auditor. The content of the report is overseen by an Executive Sustainability Committee, established in 2020, and guided by a public Sustainability Policy that sets guidelines on rational use of natural resources, eco-efficiency, occupational health and safety, diversity, human rights, responsible purchasing and community engagement. Among the material topics monitored are urban quality of life and integration with green areas, management of water, effluents and waste, relations with local communities and land regularization in municipalities in Rio Grande do Sul, and sustainability governance. The company seeks quality and environmental management certifications such as ISO 9001 and ISO 14001, specific certifications for waste management and greenhouse gas emissions inventories, aiming to consolidate integrated management systems in real estate developments, hotel operations and infrastructure services, with long-term improvement targets for its ESG practices.